On May 1st, 2023, a trimmed, unstripped XCI dump of Tears of the Kingdom was leaked somewhere on the Internet and started circulating.
By May 4th (8 days before Tears of the Kingdom officially released), there was a widely-accessible pirate repack that leveraged pre-configured and pre-packaged Ryujinx and Yuzu emulators, with a custom fork to make Yuzu work:
I think this gets at the heart of Nintendo's legal argument. Emulators as a "tool" have been frequently leveraged by bad actors to immediately provide an alternative for pirates, and in this case giving pirates an eight-day advantage. The emulator developers, perhaps spurred by hundreds of thousands of Patreon developers, seemed to speedrun development as fast as possible to make these kind of glaring oversights a reality.
In other words, it's taking a tool and pushing it to the absolute limits of fair use. I'm all for emulation as a tool for preservation but in this case it's become a bit absurd. Yuzu / Ryujinx really needed to take a step back and allow time to pass before accomplishing playable builds like this.