Sure.
But no one stops you from writing software again.
It's not that PE's can't design or review buildings in whatever city the egregious failure happened.
It's that PE's can't design or review buildings at all in any city after an egregious failure.
It's not that PE's can't design or review hospital building designs because one of their hospital designs went so egregiously sideways.
It's that PE's can't design or review any building for any use because their design went so egregiously sideways.
I work in an FDA regulated software area. I need 510k approval and the whole nine. But if I can't write regulated medical or dental software anymore, I just pay my fine and/or serve my punishment and go sling React/JS/web crap or become a TF/PyTorch monkey. No one stops me. Consequences for me messing up are far less severe than the consequences for a PE messing up. I can still write software because, in the end, I was never an "engineer" in that hard sense of the word.
Same is true of any software developer. Or any unlicensed area of "engineering" for that matter. We're only playing at being "engineers" with the proverbial "monopoly money". We lose? Well, no real biggie.
PE's agree to hang a sword of damocles over their own heads for the lifetime of the bridge or building they design. That's a whole different ball game.