Ok, I did some calling around. First to Grayson Highlands SP and then to the Forest Service that manages the Thomas Knob area. Both times the phone was answered on the first ring by a knowledgeable person onsite (that is not something to be taked for granted, so Kudos to both).

Both acknowledged that the trees there are not good for hanging bear bags. The lady said that continued hanging of bear bags on trees unsuitable for the task will only encourage the bear.

They are considering trapping the bear but my take is they are still figuring out the logistics if and how they will go about it. Nothing has been done yet.

***However, yesterday the forest service did go up there and left some loaner bear canisters for hikers to use. A big thanks to the forest service for their timely response to this problem for us caught in the middle, while they decide on the best long term solution for the hikers and the bear. ***