Yt-dlp doesn't deal with cracking, but by fetching the files from DRM-free endpoints of a given service. And from what I've seen in issues from both yt-dlp and Grayjay, such endpoints were all removed in recent months for Crunchyroll (and by extensions, neither support downloading from Crunchyroll anymore).
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That explains it. And I’m also guessing that no one has figured out the holy grail of removing the DRM from a legit stream short of screen capturing?
People in scene know methods to decrypt the DRM keys, that's how we get all those webrips but it's a well kept secret
Don't know tbh
IIRC Crunchyroll used to be a pirate site so that may be where you heard that? But they've been legit for years.
I would say just look for x265 (HEVC) webrips of your favorite content and throw it on a Plex (or Jellyfin if you don't have any Apple stuff) server. On the flip, if you have all Apple tech, Infuse is a good option, but IIRC it doesn't stream outside your network like the other two do.
I have premium and I just prefer to pull straight from the source rather than getting a rip someone else did. It lets me customize the highest quality I want. I’ve used Zotify and usually rip straight from BDs normally too, but it sounds like I might just have to find the webrips like you said.