If the output file had previously existed (so that the file name
globbing would let it match the pattern), then cat(1) would have
complained:
$ src/cat isi.*.02p0 >isi.Rall.0400.02p0
src/cat: isi.Rall.0400.02p0: input file is output file
That means that on your system
a) the shell opened the output file before doing the pattern matching,
and b) cat(1) was unable to detect that the output file is the same
as the input file.
As that check is included in GNU coreutils' cat(1) since day one,
this issue is not a matter of an outdated version of cat(1).
What system are you using (OS, file system type, shell, shell version,
and finally 'cat --version')?