No, they are just in violation of the original license. That doesn’t mean they have to comply with it by properly open sourcing the project. Generally it’s also OK to just delete everything.

There were plenty of cases where commercial software included open source stuff in a way that violated its license, and the accepted way to fix the license violation was for the software/hardware vendor to stop using the violated project going forward. Usually they don’t even have to for example scrub old firmware downloads that improperly included FOSS bits.