I would open a support ticket, that doesn't sound right. I'll do some testing in the morning when I am back in my office to see if I can replicate the fault.
I can recreate this on my supervised iPad, however, you'll notice that all app "Get" or "Download" buttons are disabled. So whilst the user can still browse the App Store via this method, they cannot actually install anything.
I did notice that but didn't know how secure that would be. Is that the best we can get, as in just blocking downloads and not the actual site? Just trying to prevent student from browsing all the time.
I'd suggest this is likely a feature request /issue that Apple will need to resolve, you can open a support ticket directly with Apple if you wish: https://support.apple.com/en-gb/contact
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