Not good enough. All previous commits still infringe Spegel's copyright, given they are still available and distributed. I would assume the point release also infringes copyright.
What do you mean they can't rewrite the commits? They can, they should, and it's really easy to do so. As for the packages, they should be taken offline.
They should neither rewrite the commits nor take the old packages offline. It's not worth a huge potential clusterfuck when the issue has been fixed on the latest version.
They should absolutely do it. They made a serious mistake and should pay for it, even if that means every Microsoft developer having to rebase all their WIP branches. The more expensive it gets the more they’ll pay attention to those things in the future.