What this usually is is the result of systems that talk to systems that talk to systems that talk to systems, all in different legacy formats never written to be interchange formats. One system has true SQL NULLs, the next system down the chain only accepts strings for that field, NULL gets written as the most sensible string, and then from that point on all downstream systems can't tell the difference between the original system having had an SQL NULL or having had the string NULL.
To be clear, I'm not denying that what you say is literally true, just that by the time I'm done filtering that particular fact through my personal belief network and personal experiences, I still end up saying that my story is more likely. It's true enough that they put a "NULL" in, it's just that the way the private firm does that is most likely that the field agents leave it blank, some software somewhere puts a NULL in some database, and the report that comes out for the enforcing authority has NULL in it. For a reporter, it's not a false statement, it's just not all the technical details.
With this story, the responsibility ends up distributed in a very plausible manner I've seen many times over; HN readers could fill in a dozens of similar stories no problem. It's a problem characteristic of these sorts of systems and the way they tend to communicate with each other.
NULL & VOID, etc.
It is entirely reasonable that the system would not accept an empty string for the plate so the process folks worked around that by instructing all employees to write NULL if they couldn't read the plate.
So, some bureaucrat might in fact know "NULL" because they type a command into a database every Tuesday to run a report.
What are the odds at least one system silently filters out apostrophes as invalid characters in license plate fields? Pretty good. These systems are often unattended, unmonitored processes often maintained by people who either can't fix errors upstream, or don't even want to, so these conversions are often written extremely permissively, trying to get through the data with whatever heuristics are necessary for the process to just Keep Working.
I was amused.
Even without sql doing odd things certain strings will just cause problems.
"; DROP *;
Lic. plates are entered into thousands of systems, so yeah it can have an effect somewhere.