It’s been a long time since I studied Sociology at Uni, so I may be a bit rusty, but I’m trying to stay current, so here’s my FWIW.
The issue of individual versus state rights has been the core of most philosophical arguments for more than 400 years, and can be seen primarily as trying to define the concept of citizenship.
In the modern analysis, you come ultimately down to three possible readings (points taken largely from the same source)
1. The liberal citizenship. The individuals, as bearers of universal, equal and publicly affirmed rights, are the sovereign authors of their lives, pursuing their private advantage or conception of the good without being beholden to the community. The role of politics in this approach is negative : only to aid and assist individuals from interference by others. This definition conforms to the concept of “the unencumbered self”.
The major critique of this approach is that the “citizen” becomes by definition an abstract, stripped of all particularity. It can be argued that by stripping citizens of their particularity, liberal theory has also stripped them of their identity, and therefore of their ability ot form communities. It is said that citizens of a liberal state are, and must remain, strangers to one another
2. the republican citizenship. A community can be formed only by a conception of the good that overrides the individual choices of its members - the priority of right over good. Republicans foster the view that a moral community should foster civic virtue - politics is a communal affair and citizenship is an enduring political attachment. Members experience their citizenship not merely as protective individual rights but rather as active participants in the common good.
3. the nationalist citizenship (also called ethno-nationalist or volkisch). With the same concept of the common good as the republican concept, the nationalist approach says that citizenship is not an expression of individual rights, but of descent from a homogeneous group. In this approach, the conflict between the individual and the state (liberal), or between the community and the state (republican) is absent. The community is a nation with distinct cultural markers such as language, religion and history.
So, enough of the theory - how does all this relate to Dreyfus.
It seems to me that the essential question in the OP is whether the rights of the state are essentially superior to the rights of the individual - IOW does the common good of the community strip the individual of his/her citizenship. I don’t think there’s an exact mathematical solution to this question. Each one of the models has strengths and weaknesses and most are present to some degree in all societies. The mix essentially defines the character of the community. IMV, a sudden shift within any stable community toward one of the three elements is most dangerous. The nearest match to a pure liberal society was the Weimar Republic, and its failure lead to the creation of the other extreme, a pure nationalist nation state in which indivdual rights were totally obliterated by the perception of the common good.
In the case of France the tradition of the post-revolutionary liberal society, strongly rooted in all layers of society, was being attacked by reactionary forces, which explains why the case had such a strong influence on the public for so long. If in the long run France emerged as a better society then the damage done was justified.
However, it’s hard to see how this relates to something like the OP’s questions
so maybe I’ve missed something.