That's going to be expensive on transaction fees, but sounds plausible.
Very cheap actually. Or even free. Coordinator fee for self sybilling inputs goes back to them so this costs nothing. Coordinator fee from the target can cover sybil inputs transaction fee. Target pays for the sybilling, Wasabi pays nothing.
Or government says to BC analysis buddies 'we pay you to track this input' and so Wasabi can make a profit by self sybilling.