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Isn't the whole emulator a circumvention? It circumvents the hardware which "effectively controls access to a work", which is the console itself.

Not exactly. Clean room reimpmentations are fine, and has been upheld in court. I think the copyright office even has a published exemption for it.

The issue is when you bypass encryption keys and systems.

Thanks for the clarification and the info.

my mouse and keyboard is circumventing me manually flipping transistors in my processor