Bank of America claims "unable to locate" a bank account number. I know for a fact that the account exists and has funds. What is B of A in violation of and what penalties are they facing?

First to be honest I am sure if the number is correct they would levy it, they have no interest or reason not to.

Is there a chance that there is something wrong or missing from the number or name of the person with the account you provided.

If they did fail to levy the account after getting a court order to do so, they would be in contempt of court.
So bring them to court where you have your judgement for them to explain this.