As my boss at the time eloquently said: LVMH is not gonna take "sorry but our ToS" for an answer after they spend millions in their latest ad campaign because if you squint hard enough you can see Lea Seydoux's nipples. And meta knows that extremely well, so there never was any doubts about them restoring any accounts no matter what the ToS says.
I am curious, is there something in there that legally binds them to restore an account automatically disabled? I was under the impression that, since Instagram is a free service offered by a non-state company, they are not legally obligated to keep any account opened. What would the lawyers sue Meta for? As I understand it, if you build a business on instagram and your account gets deleted/disabled for whatever reason, you have no grounds to sue Meta