They know they are breaking the state capacity limits (to our knowledge)
Although I know we're hearing various numbers and the like, I really don't think they're actively breaking the law as it stands: there is no reason to believe that there is so much of a financial crunch that they would risk that level of violation. Whatever they're doing capacity wise, in my view, is being done within the specific conversations they have had with VDH regarding the interpretation of the guidelines in place.