I agree with what seems to be the consensus here i.e. that the ball is out. So why bother joining a thread that is resolved?

Because I want to opine on what I think is a red herring about whether the chain of players binding on (or not) are 'part of the tackle'. 14.10 talks about "any player in the tackle or on their feet over the ball" which implies that player on their feet over the ball is not 'in the tackle': that's a role reserved for the tackled ball carrier and the tackler(s), the latter of which are defined by their bringing the ball carrier to ground, and going to ground with them (if they stay on their feet, they are simply an "other"). If the player over the ball isn't in the tackle then nor is anyone else who binds onto them.

So that centipede of players trying to give the 9 room for a box kick is irrelevant for defining the tackle area: as soon as they move the ball >c1m away from the actual tackle area, it's out.

Regarding Blue 1 and whether he is offside, it therefore depends on when he arrived in that position. If it was after the ball got to where we see it now, then I'd say he's fine.