I saw in another article too that after they admitted that it had in fact happened, they claimed that the problem was that Media Matters had made it seem to be more common than it in fact was.
The reality of course is that MM just reported that it had happened. And used-to-be-twitter has already admitted that much.
So yeah - they're going to get their asses handed to them in this lawsuit.
The problem though is that we're now in a timeline in which the fascism-adjacent demagogues who support Musk are so invested in their narrative that they're going to view the failure of the lawsuit as some sort of contrarian proof that it was justified. To them, it's not going to fail because MM's accusation was in fact legitimate, but because "blah blah blah deep state something something great replacement yadda yadda woke mob."