Interestingly the release notes include this section:
fusee no longer supports applying IPS patches to KIPs.
Followed up by:
The IPS subsystem was originally designed to make nogc patches work for FS, but these are now internal, and it appears the literal only kip patches that exist are for piracy.
Does this indicate Atmosphere is going to become more hostile for any form of piracy?
I don’t think it’s actively hostile to it (though I would understand, given the yuzu situation), but simply that they internalized a previously external mechanism because it was simpler to do that, and they decided they simply don’t care about piracy.