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This happened to me as well a few times (different games though and digital installs though), your save data and cartridge should be fine. You can just delete and reinstall with either torrented or .nsp's downloaded onto your console using Tinfoil (or the z ones, forgot their name) .
I believe one free shop called "Ghostshop" is still up
I doubt the physical copy itself got affected, I’m pretty certain the carts are read-only.
I thought bans only affect online multiplayer? You might still be able to verify game files if you’re connected to WiFi. If not, you can try deleting the update data and then downloading the update from a shop. I’m not sure if downloading only an update is possible, though, so you might need to download the full game too