I know we have citizens united but corporations are not people lol
Citizens United didn’t make corporations people. Corporate personhood had been a thing for a very long time, largely about whether or not forming a business means you lose legal rights operating under it (Does a business entity have freedom of speech? What does freedom of the press even mean in an 18th century context if it doesn’t apply to a business [aka a newspaper]?) and whether or not regular old laws prohibiting a person from doing a thing can be applied to businesses.
Right, emulators aren’t illegal but a bunch of adjacent things can be - for example system BIOS/FW/encryption keys/ROMs if you don’t dump them yourself from your own personal hardware.
What got Yuzu in the crosshairs was announcing support for Tears of the Kingdom before it released, meaning they were testing their emulator on an unreleased game and the odds that every dev and tester had legitimately gotten a copy of the game before official release is so low that they weren’t about to fight it and go through discovery (which might have identified significant additional piracy on their part). It was easier to fold and settle, and probably saved them from an immense amount of fines for piracy used for testing.