I decided to do some testing with Battle Racers, just to see if I would be able to get any sort of different result. Unfortunately, everything I tried ended with the exact same result.
Even when changing the chipset to a non-DSP value, the exact same "black screen with red dots" displays. I was hoping it would at least boot up to show the "Banpresto" logo like it does in Higan without the DSP-1 rom.
I just find it odd that the game exhibits the exact same results, no matter if you use ID 0000 or a DSP ID. Usually Canoe will C7 if you try using ID 0000 with a special chipset game. I'm not even sure if the game is actually booting-up or not to be completely honest with you, but if you soft-reset with "L+R+Select+Start" at the black screen with red dots, the red dots do in-fact disappear. So maybe it is booting-up, or at least trying to, not exactly sure.
Anyways, I didn't achieve any results to speak of unfortunately, but I did want to at least mention them just in case it might be helpful at all.
Battle Racers must be doing something really strange that Canoe really, really doesn't like.