I am not suggesting lemmy.world should be "complacent" in this activity and keep the content after receiving any type of notice. If you host any website with content coming from users, you are not responsible for what they post, as long as you try to comply with the law and remove any offending content. In this case, complacency would be specifically allowing such content, and not merely not moderating harshly everything in they grey area.

https://github.com/CMahaff/lasim/releases

https://github.com/CMahaff/lasim/releases

Pre-legal action such as DMCA requests or cease and desist letters

It depends, you can rent an already set-up server/VM just for torrenting and related purposes, but of course nothing prevents you from setting it up in any VM wherever you rent. Just know that some providers that don't explicitly offer a seedbox for purposes of unknown legality will not appreciate it and may terminate the lease.

Well, more precisely it's a piece of hardware, and it remotely manages torrenting whatever you want, and then you can securely download it wherever you are using the software part