I just think converting analog to digital to analog again will result in a loss.
I don’t think that it would. They aren’t really digitizing the music, they’re creating a 3D image of the record disk (at a very high resolution) then either creating an exact duplicate. The software can compensate for things like warpage.
Alternatively they can use the media to reverse engineer the device ( or at least critical parts of the device) necessary to play it.