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Halfway between Wine and Rosetta. The binary itself gets modified, but both source and target are x86 so no transpilation.

That sounds like just Wine?

WINE doesn't modify binaries, does it?

It doesn't, it is a runtime for running Portable Executables[1] on the fly while also mocking windows API libraries to Linux implementations

Yeah, that's the key difference. Wine leaves the binary intact, while AnyPS5 actually patches/relinks it.

Does Rosetta modify binaries in-place?

No. It's effectively a JIT.

(It saves copies of translated binaries behind the scenes, but it still behaves like a JIT overall.)

Could something like Rosetta be built out of this?

I think so.