Except the entire the reason he got DMCA'd was because he was using c2077 modding tools to create said mod... So either you're wrong, project red is wrong, or someone else is lying.

If what you said was true then none of these companies would have nothing to stand on, it's simply its own standalone project that happens to work with these games... Except I think we all know that's not the truth.

Here's the thing, he and the other modders that are doing this are very much so running a fine line here. They're modifying the game's code, sure it's in memory, but it's their code they're modifying to get things to work. It's not just relying on using existing API calls that are open for them to use. Just because they're not modifying the files on disk vs modifying in-memory doesn't mean they're not using their IP, they certainly are and there's precedent that this type of action falls under the DMCA.

Take in point that Riot and Bungie and many other companies have DMCA'ed and sued cheat makers and hey those guys were also just selling mods for their games. They also weren't selling any files from their copyrighted games either they were just selling a framework to inject their software into their games. So question is are you also saying that Riot and Bungie are also DMCA sue-happy people who are Debbie downers that are preventing coders from making money?

Your simplistic, it's just a phone case, isn't analogous here.

Don't get me wrong, IP law is tricky and IANAL but again, when a company politely asks you to respect their ToS and not sell a mod using their IP and you throw a tantrum and manage to piss off your community, well good luck buddy.