If the lounge swipes the Priority Pass card they
may detect that it is ineligible, but my guess is there is an unpublished grace period while Priority Pass works to send out replacement cards.
Here is an example to support my hunch:
http://www.flyertalk.com/forum/17494659-post240.html
Makes perfect sense. I suppose that the easiest way to eliminate any possibility of them detecting its "Select" status is to make it not scannable by, for instance, scratching the strip. This way they'd be forced to just write down its number manually, which will essentially eliminate any possibility of running into problems.