If the game is fully encrypted, and the DRM uses PSP or ME to keep the RAM of the game itself at all time encrypted so I can not read or debug it, it directly does prevent that.
Yes, but that's a matter of using the PSP or ME, not SME which is what I was discussing. SVE brings some "interesting" things to the table since they could technically spin up a VM to run the game and keep the memory protected from the host, but they'd have to pass the GPU directly into the VM which would cause all sorts of other issues in a PC environment (why the *&!$ can't I tab out of this game!).
> which would cause all sorts of other issues in a PC environment (why the *&!$ can't I tab out of this game!)
As if that would work today – look at No Mans Sky, [Alt]-[Tab] already doesn’t work.
Wait 2 years, and we’ll see exactly this. Already today DRM is often implemented as kernel modules, and the OS – especially on windows – prevents debugging for normal users.