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So, is there a TestFlight or do TF apps also need to adhere to the same rules as AppStore apps? (I.e. no emulation)

Internal TF builds have no review, but can only go to 100 people who are in your developer account.

External builds can go to 10,000 people by invitation, but have a review.

Emulation is now allowed on the app store

but the JIT that makes them performant is not

It's extra steps but you can enable JIT with stikdebug on the app store