This is a bipartite network. Image
If you create it's adjacency matrix you see that it's diagonal contains zero elements, and two blocks.
is it a block-diagonal matrix? I can see two blocks, but I think that the graph is one connected component and not two (two blocks).
For block-diagonal form, the blocks must be along the main diagonal. In general, the adjacency matrix of a graph is block-diagonal with one block per connected component. For your example, the matrix is block-diagonal with one block but not with two blocks.