As I said, it is a historical argument to argue why something was designed in a particular way. You do not seem at all interested in attempting a historical argument. You aren't going to convince me without offering something in the way of common uses of block matrices in numerical linear algebra in the early 70s or without technical notes describing the intent of the parameter to be used for general block submatrix purposes.
Yes, what you are saying is correct about the technical capabilities of the parameter; I have agreed with you 3 times already, but it is irrelevant. You keep ignoring the actual point: an answer of what you can use the parameter for is not the same as an answer to why that parameter is there. You can be quite right about what the parameter allows you to do and quite wrong about why it was added in the first place.
The origin of LDA as an argument traces all the way back to LINPACK. Just read chapter 1 of the LINPACK user's guide, https://doi.org/10.1137/1.9781611971811.ch1 and see them using the parameter as I describe. It is used precisely to over allocate an array in a program so that it can be dynamically sized at runtime. The allocate an array A of size 50 x 50, specify LDA to be 50, then assign N to some value and use 2d array notation to set a block of the array A to a matrix. My assertion is that is precisely the use case they designed that parameter to be used for. That usage is why algorithms with LDA are first class and there are no variants (and they offer many variants) without it: because they knew that people would compile programs with overallocated arrays and require it.
LINPACK predates even fortran 77, tracing back into subroutines developed by Wilkinson this sort of use arises from fortran 66. I'm having a hard time finding technical notes describing those routines though. I'm curious if LDA shows up in the ALGOL 60 versions. In any case all this history was relayed to me by my supervisor who worked worked much closer to this history than me so I trust that quite implicitly.
For you, maybe it was enough to see that the parameter was a stride and stop digging. For me, I saw that, saw it always being set equal to N (and M = N) in all actual uses in the modern code I was working with and I was curious why it wasn't abstracted away because even at Fortran 77 is was easy to hide it behind a zero cost abstraction. So I went down the historical rabbit hole. Maybe I should have just pointed out that the names of the subroutines are limited to 6 characters because of history and you would have agreed that use of LAPACK is a trigger for most people to realize that fortran is filled with historical artifacts.