Seems like the condition/reformatting dosen't work on blank cells.
Try this:
1. if(equals(formatDateTime(items('apply_to_each')?['DueDate'],'yyyy/MM/dd'), ''), 1998/02/02, formatDateTime(items('apply_to_each')?['DueDate'],'yyyy/MM/dd'))
or this:
2. if(equals(items('apply_to_each')?['DueDate'], ''), 1998/02/02, formatDateTime(items('apply_to_each')?['DueDate'],'yyyy/MM/dd'))
Can't remember if '' is the value of blank cells, but I guess if there is a "blank" value from the excel cell output, put it between the '' in the expression.
Hopefully this solve every case.
Did you try this for the list rows present in table?

That should remove the blanks.
Br
Heartholme