The "we are not a person or organization" argument sort of breaks down once you file a lawsuit.
https://storage.courtlistener.com/recap/gov.uscourts.txwd.11...
I don't know if this is the sort of thing a court can do but it seems like the obvious solution to eliminate the damages to the plaintiffs while keeping the sanction in place.
The suit doesn't represent that Tornado Cash itself is a legal person, in fact it represents the opposite. "Tornado Cash" is not the plaintiff.