This thread is still one of the top Google results for pak blacklisting, so I think it’s important to note that “PakBlacklist-Shipping.txt” and “PakBlacklist-Development.txt” are both deprecated in UE4/5 (since version v4.25 or so).
The above methods have been replaced with DefaultPakFileRules.ini.
Directions on how to set this up in the following post: