It seems pretty clear that the process that kicked off this mail to backers of this project is independent of any other part of Kickstarter that knows any of the details about how this particular project scammed its users.

It looks like this is a process that kicks off semi-autonomously as soon as an IP dispute happens; there is probably a button someone pushes somewhere to make it happen.

So the short answer is: that's canned text that does not perfectly apply to a situation where there's an IP dispute over a project that is also a scam.

This. Either KS needs a few more canned email responses or maybe a team that can actually write custom emails. I would think that with all the money, law, and slobbering fans involved you'd might want to have at least someone who can handle these kinds of situations with care...but I guess the lazy approach is working for them...

Another thought: maybe KS really doesn't want to say that the project isn't going to happen as that would hurt their brand. If a KS canned email admitted some kind of failing, that could hurt their reputation in the eyes of backers everywhere. So they just have to stick with the ignorant canned email and just pass the blame on down to the project creators.

That is a possible explanation. I guess it shows how unwise it is to use automated emails in cases like this.

It sounds like they have a fistful of commission and don't want to let go.