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I'm attempting to emulate the MIDI to game boy sync using the TCPoke BGB support, but I don't really understand one thing: How does the circuit work? From what I'm guessing, the MIDI pins just get basically mapped to the link cable. So in theory, all I would have to do is take LoopBe1 and write a python script to send it to BGB's virtual link cable, but I think I'm completely wrong. Thoughts?

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In the circuit (Arduinoboy I guess?), there is a microcontroller with software that filters out the MIDI SYNC messages and converts them to signals that the software on the Game Boy understands. In case of LSDj, that would be 8 pulses (=one byte) on the clock line while nanoloop expects the data line to toggle high/low with each MIDI clock.
For emulation, you need to implement this functionality. Just forwarding the MIDI bytes to the link port only works for mGB.