Zombeaver, just offering workarounds. I will say this though, I'm curious as to why it would not work in SteamLink. It's just streaming to a different machine right? After really reading your post, I'm curious to try and duplicate the issue (sans Steam Link) what are your automation settings and what controller are you utilizing? I'm only in Launchbox when adding games etc. But I do utilize pcsx2, so I can see if I get any weird behavior. The only emulator to ever give me escape issues was the atari jaguar emulator as escape just pauses the system.
Edit: So automation works fine in big box for me as well. I can say this, I never knew you could use controllers in launchbox and controller companion is a pain when launchbox desktop mode is trying to make it's own cursor as well. With that being said, automation didn't work at all for me in desktop mode. But my controller companion worked when I enabled it. Is there a separate setting somewhere for automation in desktop mode or should it carry over from big box?
Edit2: Ok, found the option. It was a bit of a pain because it seemed to know it was already bound via big box perhaps? However, I mapped the hold and exit to my thumbsticks on my xbox one controller wireless and all of my ps2 games exited without closing launchbox with them. As for the emulators that aren't closing at all, I'll have to check them out. I'm using a standard Mame build so if you have a link for the version you are using, that would be helpful. Curious, is that a special UI version and why would you need that if launching from Launchbox?
Edit3: Just read the old thread. So for one, my suggestion to use AHK wasn't that far fetched as it seems that this is what Jason is using for automation. Not sure if that script is encrypted in some way or if it can be viewed and adjusted. But you shouldnt really need to anyway. Did you ever try a reinstall etc. after that patch came out and you realized you were still having issues? Wonder if maybe there is just a issue with the ahk script not being updated properly or something to that effect.