Grim Embrace is canceled by Deadlock.
I tried to do an ultimate gen blocking build with grim embrace, thrilling tremors, deadlock, and corrupt intervention. At one point, two gens were blocked by deadlock, and I hooked the last unique survivor; activating Grim Embrace.
When Deadlock ended and stopped affecting the generators, they became unblocked immediately, even though Grim Embrace was still active and should theoretically take over the entity block. This allowed them to finish the last generator while Grim Embrace was active, which should be impossible.
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The Entity is the biggest scammer. Confirmed.