TYPO3 Core

You could still localize records, even if they are set to [All]. This is by intention:

doc_l10nguide:
When using language binding combined with “config.sys_language_overlay = hideNonTranslated” there is a special significance of the language value “[All]” (technically the -1 value): These elements will not be hidden in the translation - and they are not meant to be translated although you can choose to do so.

So it might be a idea to implement a switch to disable the localization of [All] records. But that should be a new issue as not only the list module would be affected by this switch.

Resolved with no change required: With the current localization system the localization of "All language" records is intended.