The legality of emulation absolutely hinges on whether or not the alleged infringement is monetized.

Sony lost all of their suits against Bleem!, sorry but it’s not illegal to monetize an emulator. The rampant piracy they were engaging in and essentially promoting is what fucked them. Including using leaks to test their emulator against and patch issues with games that hadn’t been released yet. There’s been talk that they also had a ROM stash on their discord.