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Yuzu developers agreed to pay $2.4 million in damages to Nintendo to settle their lawsuit
(storage.courtlistener.com)
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Nintendo had a clear path to victory in this case, it wasn't a new idea that needed to be tested in court.
The yuzu devs really fucked up by adding in decryption to it. Without that, the emulator was totally safe, and likely why nintendo didn't try and do this years ago.
If you're making an emulator, or anything dealing with copywritten work. Don't add things that break the copyright protection, nintendo can come for you then. It's that simple.