The trajectory was suborbital, the perigee was inside earth so the actual trajectory would intersect the earth's surface, and the atmosphere first.
By the way, I agree that they never intended to complete an orbit, just that they intended to get into (and promptly out of) an orbit. IFT4 did that, for example.
After IFT3 failed to achieve orbital insertion (probably because a leak caused it to run out early), SpaceX announced that not only was the plan to not get to an orbit, but also that they had achieved orbital velocity. They claimed both things!
Both of those claims seem to be lies, and it is also logically inconsistent to claim that you never wanted to reach orbital velocity and also that you got there.
And everything matches what they said, what they filled with FAA prior to the fight, etc.
"for an actual deorbit burn, the ship would need to yaw 180º first"
So there was no deorbit burn planned.
How were they going to get the 100t spaceship out of orbit before completing a single orbit without doing a deorbit burn?
Sounds like the plan to de-orbit was then to just go belly forward and let drag take you out of orbit. That is pretty much how every object in LEO de-orbits.