Jesus addressed this conversation to the Jews who believed in him. It doesn't sound to me like a conversation you have with true believers. Perhaps they are like the believers in John 2:23-25, to whom Jesus didn't entrust himself.
You would do the works of Abraham if you were his children. This is the same message as 1 John. Their relationship to Abraham is a big hangup for them. Sometimes a great heritage can be a liability to an unregenerate heart. You are not from God because you do not hear my words.
That the truth will set you free from sin that enslaves you is a great insight, completely lost on the original hearers. The issue was slavery to sin, not to a foreign power. Jesus is very clear with them -- you will die in your sin. Ouch!