I know emulators are banned for sacred stones due to rng not working right, is this the same case for fe7?

Yes for the exact same reason.

The worst part about FE7 is the route actually doesn't work the same way on the classic ROM as RNG advances differently on Chapter 19 and Dorcas appearing early changes position in the beginning of the run. Though there is a fix availabble in the resources, it's still not valid for our leaderboards, as it also runs faster than classic hardware.