Based on this NPR article, there are only about 28k voters nationwide on the "potentially fraudulent" list. And when Texas tried pursing theirs, they only ended up being able to act on ~100 of them.

Realistically, the rate of fraud nationwide is actually really low and this database would just a waste of time for the states that pursue it. But by holding it off the courts would be doing more to cover the administration (by giving them a plausible excuse) than letting it proceed.