It was quite a bummer to find out that Lucasfilm sent a cease and desist letter to the fans who were making the UE4 remake. They were quite public about the game (appearing on several news outlets) and (to their credit) were looking like an official, high-quality remake of KOTOR. However, this is probably what worked against them since Lucasfilm worried that it appeared to be an official Star Wars game.
I am far from a lawyer, but the letter seems to specifically note issues that the game on its website, social media, and public statements create confusion that the game may be affiliated with Lucasfilm. The project was using the original KOTOR logo with their "Apeiron" subtitle underneath, so to anyone viewing that there's no way to know it wasn't official. That being said, they later specify that they want the code and game materials destroyed, so who knows if it was an image thing or the game itself that worried them.
I don't think this is reason to fear similar action for any of the SWG emulators at this point, but still it's a small cautionary tale of the fine line that some of the bigger Star Wars fan projects wrestle with.
One of several articles on it:
Their website if you want to learn more about them: