It's essentially a million-dollar silicon modding tool. It can, in 99% of cases, read down to the individual transistor level.
They almost certainly can but I believe the point of the FBI making a big song and dance about unlocking that phone (which they did unlock by themselves, btw) was about trying to force Apple into allowing TLA backdoors via the court of public opinion.
On a tangent, a bad actor could then release HDCP keys for TVs from a big brand like Samsung and effectively invalidate all content protection for all the TVs they have already sold (afaik those can’t be remotely updated). If those keys are then revoked, there would be millions of bricked Samsung TVs.
Who says they can’t?