The controversy should take you back to several years ago when SNK manufactured Neo Geo X with Final Burn Alpha which is not for commercial use. However, it looked like SNK went with it and after some time, the console was eventually discontinued. There might be flaws in the emulation at the time and people have concerns about inferior emulation of the games on the upcoming Capcom Home Arcade because it uses the same emulator.
The good thing is that some CPS-1 and CPS-2 games can be played at home legally via the Capcom Home Arcade as they never have the console releases. Shame that there's no CPS-3 games there but then, MAME and Final Burn Alpha should already have accurate emulation for them. The emulation of 32-Bit arcade systems onwards is not easy, mostly for MAME but for other emulators emulating 128-Bit consoles and arcade systems onwards have more accurate emulation than what MAME has today. Even in the present time, the emulation of 128-Bit arcade systems is still super-inferior on MAME. Various graphical effects are missing and inaccurate and the actual blur effect is missing for textured and enlarged 2D stuffs, hence the pixellated textures for 3D models.
Even the boot process for CPS-3 and NAOMI is not an easy stuff as it takes time for data to be transferred from optical disc to memory. However, there should be a way for emulators to skip that process. The only CPS-3 game that never gets a console port is Red Earth and even then, other fighting games like Jojo series and Street Fighter III series are the reasons to discover the CPS-3 arcade system.
The controller case design is quite silly. Somebody must be stupid enough to come up with that like it's shaped like a Capcom logo. You may as well swap the case with a proper controller case for a fair play. The system is basically like Pandora's Box except that the games are legal this time.
People are already suspecting that Soulja Boy might be the cause of the controversy as if he manipulated someone from Capcom to do even more shady things of his like taking the Final Burn Alpha emulator source code and then putting it in the actual product without permission. The authors of that emulator are NOT happy about it and blaming Soulja Boy this time for this controversy seems ridiculous.