Isocyanide is not as toxic as its isomer cyanide and can be tolerated. The purpose of its removal is due to its disagreeable odor which is not at all tolerable.
While some isocyanides (e.g., cyclohexyl isocyanide) are toxic, others
"exhibit no appreciable toxicity for mammals". Referring to ethyl
isocyanide, toxicological studies in the 1960s at Bayer showed that
"oral and subcutaneous doses of 500-5000 mg/kg can be tolerated by
mice".(Wikipedia)
Isocyanide is removed on the basis of its property of acidic hydrolysis.
Isocyanides are stable to strong base (they are often made under
strongly basic conditions), but they are sensitive to acid. In the
presence of aqueous acid, isocyanides hydrolyse to the corresponding
formamides:
$$\ce{RNC + H2O → RN(H)C(O)H}$$
This reaction is used to destroy odorous isocyanide mixtures. Some
isocyanides can polymerize in the presence of Lewis and Bronsted
acids.
But the story does not here. The formamides are still pretty unstable and further degrades to form amines and formic acid in the presence of acidic medium.(Here)
Isocyanides are hydrolyzed by dilute mineral acids to give primary
amine and formic acid (Isocyanides are not hydrolyzed by bases).
Isocyanides are hydrolysed only by acids and not alkalies because the
negative charge present on carbon atom in isocyanides initially
attracts electrophiles ($\ce{H+}$) but repels nucleophiles ($\ce{OH–}$). When a
proton gets attracted to negatively charged carbon atom, the tendency
of this carbon atom to attract a nucleophile increases due to presence
of positive charge on the N atom and hydrolysis is facilitated as
shown below:
Mechanism:
Here is a research paper for a reference.