It's really just "this thing happened" and nothing else, as if they're reporting on events where they're just innocent bystanders. Instead of saying what they did, it's "hey, we didn't do [detail]".
Is it a legal liability thing to avoid using specific words? It's hard to imagine it being bad PR to "properly" apologize (at least compared to releasing a non-apology apology statement).
Yes, theoretically Itch could sue them for lost revenue. Brandshield should be very afraid of Funko getting sued since getting your client sued can't look good
I would imagine that admitting fault is a bad look when it comes to fighting the lawsuit that inevitably comes after. Hard to claim you're not liable when you've made a statement saying it's your fault.