On the one hand, I'm absolutely against blanket age verification laws like this one, think there are better ways to solve the stated problem, and believe that the current crop of legislation is being pushed by bad actors for nefarious purposes by means of pandering to public mania.

On the other hand, I do appreciate that a possible unintended consequence of the out provided by (5)(b)(I) could be that PII (along with user generated content in general) becomes similarly radioactive to if the US had passed a GDPR equivalent. Either that or it's used as a justification for every single online service to require government ID in order to interact with it "because liability". Unfortunately I assume the latter is somewhat more likely at this point.

Also is it defined precisely what it means to "process users' personal data"?

> there are better ways to solve the stated problem

Call your representatives. There is overwhelming demand for age gating social media (based on, honestly, good evidence). This will be implemented based on who calls in. If the status quo of technical people being hopelessly nihilistic continues, it will be written in the stupidest ways possible.