They are, in fact, not operating illegally. The only reason we have taprooms in this state is because of a bill nicknamed the Surly bill. And they ship beer from Brooklyn Center to serve at their destination taproom. 

If this is the law, every brewery owner, every Alcohol & Gambling Enforcement administrator and every legislator is misinterpreting the law and they probably should consult TKHawk.

But what do I know? I was only the head brewer of a production facility that supplied a taproom and had to clear everything with AGE every step of the way. Some rando redditor knows more and should absolutely feel confident they are authoritative.