So, the thing about circumvention exceptions is that...
1. There is no general exception for format shifting. If there was, DMCA 1201 would have zero legal weight.
2. Even if there was, it would not materially impact the legal status of this DMCA 512 takedown request
This is because DMCA 1201 circumvention exceptions only apply to half of the law. Section 1201 renders two different acts illegal:
1. You can't circumvent DRM, unless for specific purposes.
2. You can't tell anyone how to circumvent DRM, regardless of purpose. This is the sort of violation being alleged here.
Depending on how you look at it, either Congress assumed a black market would exist for DRM circumvention technology anyway; or they assumed people who need lawful circumvention would in-house everything and destroy it when they no longer needed it. That's the sort of question a court might have to interpret if someone was a bit more careful than, say, publishing the DRM unlock straight onto GitHub. But that's not this case. In this case, the law does not facilitate any fair use argumentation whatsoever.
It's not a lie, the DMCA 1201 exception process is just hilariously toothless.