Yeah but weren't they making specific patches to accommodate an early leak of Tears of the Kingdom? At that point, they were kind of directly facilitating piracy; no one could argue that they were working with a legitimately obtained ROM.
Of course, I don't know the details, I've never actually gotten Yuzu working in any capacity (since I run macOS) and thus I wasn't part of their Patreon or Discord, so maybe I'm mistaken?
I see a lot of falsehoods (like "nobody ever sold an emulator before," when Apple showcased commercial PlayStation emulation at a keynote event in 1999) going around and I assume the reason is people don't like the implications of this case and are substituting a more palatable version of events that didn't really happen.
Not only did Apple showcase it, Sony sued Connectix and lost, thus formally making emulators "legal". [1] Similarly though, it looks like they were able to basically shut it down by getting injunctions on it while the case was pending, and eventually buying and discontinuing it.
Of course, I don't know the details, I've never actually gotten Yuzu working in any capacity (since I run macOS) and thus I wasn't part of their Patreon or Discord, so maybe I'm mistaken?