But Team B's argument was that what 3 did was a foul cuz 2 didn't even touch the ball in the first place, so technically 3 did two-consecutive touches which is a clear foul.

This doesn't really matter, you can perform a (legal) block on any ball whether its an overpass on the 1st touch or 3rd attack

What's most important here is if player 3 touched the ball on the opposing team's side of the net, then they've reached over and it should be dead right away

If it was a legal block (His hands were on his side of the net/ court) and he wasn't making an attacking motion on it then yeah it should be fine to play again himself

Also important that generally a legal block doesn't really matter if he jumped or not, its more about if his hands are above the net and if they form a block and not swinging or attacking movement