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No issue disclosing AI was used here. My only hesitation in releasing the code is copyright issues? Maybe I'm overthinking not exactly sure how this works

in fact - it is disclosed (look at AI Disclosure)

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You can have it so the user supplies the rom, and you have scripts that rip the assets and such - convert them, build them, disassemble pieces, etc. That's been a pattern for almost a decade now (AI makes this faster.. have it do all the grunt work). That way you're not providing any original game assets.

Do you think having the source code helps anyone? If so happy to do it