Sure, and Nepo, Grischuk, Svidler etc. don't. Norway Chess treats these two groups the same.

are they supposed to vet individuals with a twitter litmus test? That, in some sense, seems worse.

Some options:

1. Don't ban anyone.

2. Ban only players who have publicly supported Putin and the invasion of Ukraine (like Karjakin has).

3. Ban all Russian because they were born in the wrong country.

You're saying that 3 is better than 2, and I can't agree because in option 3 you're banning innocent people for reasons completely out of their control.

Maybe 3 can lead to important people changing nationalities. Which would be super embarrassing for Russia.