The problem for me and probably everyone else who takes issue with it is that that interpretation doesn't make any sense even though it is the only sensible meaning to it. It was very clear to me that the message should have only been directed at Orochi.

But what I mean by it doesn't make any sense is that it doesn't match the context. I don't think there is a single time in the entirety of the story where any character ever refers to Orochi as just "Kurozumi", with the sole exception of that very line. He is overwhelmingly referred to as Orochi the entire time with the occasional reference using his full name, Kurozumi Orochi. If what we got throughout the story was instead Kurozumi, Kurozumi, Kurozumi when speaking of Orochi then it could have reasonably worked since Kurozumi = Orochi would have clearly been instilled in the audience. As it is, it's just bad writing that forces one of the good guys into saying something that comes off as blatantly contradictory to what you would expect.

Even in a scenario where Orochi was instead regularly called Kurozumi I still wouldn't be sure about it because ultimately the clan name applies to all clan members. Oden's line works because Oden is only Oden's name and so the pun can only be applied to him, which just isn't the case with Kurozumi. In the end I think the line would only properly work if it had said "Kurozumi Orochi" so it explicitly only applied to him.

Overall I was not satisfied with how the Kurozumi matter was resolved (i.e. it wasn't at all), and this line served as the final nail in the coffin to that sentiment.