In an interview with HuffPost, Spider-Man: Far From Home director, Jon Watts gives his take on the issue.

Reading the quote above makes me believe that neither Jon Watts and possibly not even the writers of Avengers: Endgame has a clear and logical explanation of the blip. Watts added: This is a genuinely interesting plot hole/concept that I hope will be explored more in the coming films or TV series, but I highly doubt that will be the case. If Spider-Man: Far From Home is any indication, the blip, even when addressed will be done so in a comedic manner. Thanos said all living entities, all living beings, half of all of them, so does that include bacteria? Did half of the stomach bacteria inside of you disappear and people get really sick?”

Spider Man  Far From Home Director Discusses Confusing Nature of Blip - 15