I don't know CTS operating rules, but would assume they have something similar to what we had in NORAC/Eastern code that removes all signal and some other operating rules from the equation within the limits of OOS track. When that happens everything within the limits of the OOS is strictly under the authority of the Employee in Charge (Foreman/Roadmaster, etc.) and for all practical purposes anything moving within the limits is just another piece of equipment. Basically, they don't even need the headlight on, although there are rules about track equipment lighting, etc. and you have to deal with grade crossings, which generally would require all stop and protect without other considerations being taken. If dispatch issued them an order under the info we've seen here, I'd automatically assume it was just notification to the crew that the track was OOS so they would be governed accordingly, not a standard extra movement order.
As another (NNG, but interesting) example, IIRC the NYC removed the track from service in the same manner for the test runs of the jet-powered RDC back in 1966. The Roadmaster determined that the track was safe for the high speed running and management suspended the Restricted Speed requirement, and off they went at 180+ MPH.