It's already blurry, or more specifically, the line between "computer code" and
any legible data is blurry. There are plenty of perfectly innocent companies out there whose names could be valid computer code in certain contexts.
What they actually seem to want is to ban company names which could cause damage or disruption to the Companies House IT system. I'd be surprised if that wasn't already banned in some way or another.
Of course, the thing about law is that it is administered by humans and not computers, so there is some scope for common sense to override the strict letter of the law.