It can, but that seems to be more related to poor implementations by the game devs, and not inherent to it. There are plenty of examples of games with Denuvo that still run fine (give or take your opinion on whether the presence of DRM is inherently "impacted performance").
Isn't Denuvo actually implemented in a game by the DRM developers, though? I remember reading that they have a process where the game dev sends Denuvo an unprotected executable, who adds the DRM to that executable and sends it back.
Thus, I believe the poor implementations are directly the fault of Denuvo.
The games run terribly on release because they have Denuvo, and then when the sales volume no longer justifies the licensing costs of Denuvo, the devs strip it out and sell it to the players in patch notes as "optimizing performance."
Someone else mentioned GTA getting more aggressive copy protection out of nowhere. It's not out of nowhere. With GTA6 ads out for a while, sales of GTA5 are up as people either play it for the first time or replay it. Sales going up means they can justify copy protection.
Denuvo has layers upon layers of obfuscation that inflates nearly every instruction and function call, extra code execution that does nothing to throw off someone trying to follow code execution paths, and constant moving around where the game stores stuff in memory, again, to throw someone off watching via debugger.
It's pathetic because one company has been almost entirely responsible for people needing to buy faster and faster CPUs and GPUs trying to eek out more and more performance. CPUs, GPUs, memory - all of it has gotten enormously faster, we have more cores, etc. Despite all that, every new game barely runs at 60fps.
Do you really believe that year after year game developers and game engines get worse and worse at performance? Of course not.
If many of your users misuse your tool, that's a design problem not user error