Yes exactly. They proved that advertisements can and will be shown alongside objectionable content, and that there are no protections against that. Them conducting a test is not “manufacturing images”. X arguing the vast majority of users won’t experience that is merely because the majority of users won’t browse that content - but those who do will see any adverts alongside it.
This is a frivolous lawsuit from a company that will probably be gone before the suit is even heard. Twitter is worth barely more than its debt at this point - and that’s ignoring things like not paying rent for their offices.