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I would guess, but then everything other than the random battles is still functional. To move to another room, you'd have to close the lid and let it load, but you can still get to the menus (if I remember properly).
If the battle randomizer routine was resident in memory, wouldn't it not matter if the lid was open or not since there'd be no need to access the disc? Maybe it just freezes execution of the whole program when the lid is open, but still allows and processes user input.
This is probably a futile search.
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