This is a human factors issue in this case, because the brain works heavily on what is expected, and in this case the "correct" action was being undertaken - sanding was applied - but the wrong result was observed. What would have happened in all likelihood is the thought process of "I pressed the button, sanding is being delivered, and we're not stopping".
This is called an unrevealed failure, and is an interesting issue to consider - how would this error be revealed, how can you tell the driver? You'd think holistically that the driver would realise that the sanding was not being applied to the wheels, because it was not braking, but in the moment it is likely the driver would've assumed the sanding was being applied and simply wasn't effective, and as such more sand wouldn't do anything.
I deal with this kind of engineering interlocks in my day job and I am going to steal this as a great example of it. Would be interesting to brainstorm an engineered solution.
In engineering parlance, this error would straddle the line between a slip or lapse, and a Mistake. A mistake is where an action, done in good faith, doesn't provide the desired correct outcome, or a slip or lapse, where the correct procedure undertaken by highly trained personnel just doesn't quite do it right. I'd lean on slip/lapse.
For completeness, there is a third - a violation, where it's deliberately incorrect but not maliciously so.