It uses the logic definitions of those terms.
For a thing to be "Possible", it must exist in at least one of the computable manifestations of the statement.
EG, "X=1" is "Possible" given the set of
X=1, Y=0
X=0, Y=0
X=0, Y=1
X=1, Y=1
In at least one of those relationships between X and Y, X is equal to 1, thus X=1 is "possible."
If however, the set is this:
X=0, Y=0
X=0, Y=1
Then X=1 is not possible.
A "Necessary" condition happens with X=1 given the following set
X=1, Y=1
X=1, Y=0
Because all members of the set have X=1 as truth.
"Necessarily possible" means that there is not a condition between multiple sets, where a value fails to occur.
EG: X=1 is necessarily possible between these two sets:
X=1, Y=0
X=1, Y=1
X=0, Y=1
X=0, Y=0
AND
X=1, Z=0
X=1, Z=1
X=0, Z=1
X=0, Z=0
In both sets, it is necessary for X to possibly be equal to 1.
The problem with the black hole and time's existence, is that the rules of reality go absolutely apeshit. The person watching somebody fall into the black hole will never see them enter. They seem to get "Stuck", then smeared all over the surface of the event horizon.
The person falling into the black hole (assuming they dont get roasted to a crisp, have their atoms torn apart by powerful magnetic fields, or undergo spontaneous fission as space rips apart underneath them) would not experience anything unusual at all about the passage of time, except noting that the universe seems to be suddenly speeding up all around them, as they watch every star in the galaxy supernova, every new star get born, etc-- in order, until the heat death of the universe. They will fall away from everything in the universe at an absurd rate as well.
So, Time both exists, and does not exist-- SIMULTANEOUSLY.
This means that instead of a discrete X=1 being "possible", you get a state of "X=1 AND 0"
That's why it breaks the axiom.
The axiom RELIES on X being discrete. X being undefined or undefinable takes the whole idea of being true or false, wads it up, and throws it out the window.
To make matters more confusing, recent theoretical research based on high energy physics experiments suggests
It can be quite literally stated that on the other side of the event horizon, is a completely different universe.