I think no
Wife thinks yes

Steam is hotter than boiling water. The boil notices generally say boil water for 2 minutes, so yes, the sanitize cycle should be fine to disinfect the water from the dishwasher on your dishes.

We've been using the sanitize cycle. Hopefully it's been ok.

My honest opinion... TCEQ orders those boil notices out of an extreme abundance of caution. There is a chance yes that groundwater and some little bugs seeped into a buried line. Probably statistically extremely slim chance, but a chance none the less. In this regard govt standards are all about limiting and mitigating risk and associated liability. But the system is being charged with chlorinated water that by regulation has sufficient chlorine residual to kill any little bugs that magically appear in the line after it leaves the treatment plant.

Are you and your family otherwise healthy? Is anyone in your home immunocompromised or at elevated risk of bacterial infection?

Would you or anyone in your household be concerned about spending a day in the water, playing, splashing, swimming at a local river or lake? Cause you're gonna drink/ingest some of that untreated water.

I've answered those questions and never heeded a boil notice. My thoughts above are just that and are not recommendations or advice. I encourage you to make your own decisions based on what you believe to be best for you and your family.

While I wouldn't go drinking the water, I wouldn't worry about it too much.

TCEQ requires certain minimum pressures, and if it drops below that they have to issue the boil water notice.

Here's a 'read between the lines' comment from my provider's FAQ on this boil water order:

Q: What if I drank the water?

A: There has been no indication that the water provided was not safe to drink. We were unable to provide the required pressure for the system.