Why A noise blanker works by sensing impulse noise in a wideband channel and briefly muting (gating) the receive path during each pulse. That gating is a fast switching action applied to everything in the passband, so a strong nearby signal can trigger or be chopped by the blanker, producing intermodulation and splatter-like artifacts. The result is that a clean strong station can sound distorted and appear to be transmitting spurious emissions that are actually generated inside your own receiver.
Watch out Echo and bandwidth compression describe audio processing effects like DSP delay or speech compression, not the pulse-gating action of a blanker, and a noise blanker does not prevent FM demodulation.
Blanker chops the whole passband: strong signals get chopped too, so the splatter you hear may be your own rig.