Emulators have neither "breaking DRM", "circumvention devices" nor circumvention code though.
That's why Nintendo usually tries to avoid going to court for emulators unlike when they sued for the R4 cartridge for example, they are afraid of the result.
Sounds like someone should take them to court.
Nintendo Switch games are stored as encrypted data, and then decrypted at runtime by the console. Nintendo's legal position is that because the emulator will only run Switch games if the user provides decryption keys dumped from a Switch, it counts as a circumvention device and is therefore illegal to distribute. Nintendo sued Yuzu, one of the most popular Switch emulators, and the Yuzu authors chose to settle rather than going to trial.