DLC doesn't work in any game

[LunaMoo]

DLC's works fine, however many DLC's are only supported by updated game version's and for that you will have to use real PSP to patch the game backup for it to work. That means also extracting PBP files into iso's as PBP can't be edited/modified by any existing tools.

This is required since game's update key is not public and likely never will be, even official PSP emulators made by Sony(for psv and ps3) doesn't have it hence real PSP is required, no decrypting/updating software running outside of PSP will be able to do it.
This also means - no your games aren't "fully updated", they are always at the same version which your game backup is aka initial 1.0(and in case of some games released too early even pre 1.0 ;p), ignoring whatever updates you might store in game's folder since it's encrypted and unusable.