Yes, totally illegal for Walmart in DC and its employees to possess and sell since they presumably aren’t “licensed dealers.”
However “licensed dealer” does NOT equal FFL in the DC code. It equals “licensed dealer pursuant to subchapter IV,” essentially; a ‘MPD licensed dealer.’ (§ 7–2504.01) Practically speaking they mean the same thing of course since there is only one (operating) 01 FFL and, as far as I know, only one DC “licensed dealer,” both of which are the same entity, currently DC SA. Hypothetically though, Walmart could be a “licensed dealer” without having a FFL and be able to sell ammo in DC, though selling guns would still be in violation of federal law without a 01 FFL.
Internet ammo sales to registration card holders are perfectly legal as § 7–2505.02 only applies to the activities of a "licensed dealer," and as you noted, DC can’t regulate outside their jurisdiction. However, if there was an ammo supplier in DC, they would only be able to sell to DC residents in person (§ 7–2505.02 (d)(1)), but they could still ship to nonresidents (§ 7–2505.02 (b)(1)).
DC could of course mess with internet ammo sales by regulating how a registration card holder may come into possession of ammunition within the District, but let’s not give them any ideas, and this statute is not that. I also suspect even they know that with zero legal sources of ammunition in the District they would be litigated into the position of not only continuing to allow internet ammo sales, but also writing SAF (another) hefty check, and potentially risking their onerous zoning laws of where a perspective ammo/firearms dealer can establish itself.
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