Team Wasabi sent us an email explaining their ODD Emulator device will also work with AP25 and XGD3:
This video demonstrates the advanced features supported by Wasabi 360 Ultra such as support for AP25 protected games and the new XGD3 format. AP25 support is implemented without relying on patching ISOs - all you need to do is copy the AP25 data file corresponding to your Xbox dashboard version to the HDD, its that simple. We also further showcase the innovative and exclusive on-screen menu system provided by Wasabi 360 Ultra.
NOTE: Final Wasabi 360S Ultra (for Xbox Slim) hardware was used to create this video; the Wasabi housing can be seen on the left hand side of the Xbox Slim.