So I'm looking for a way to exit the model 2 n 3 emulators without the use of hitting the escape button on the bluetooth keyboard on my arcade cabinet.
If you're using an IPac, it has "shifted functions" enabled by default.
Press and hold "P1 Start", then press "P2 Start" to send an "ESC" keystroke.
Full list of default shifted functions in the right column
here.
- You may want to disable "TAB" to keep kids and/or drunk friends out of the menus.

If you aren't using an encoder with shifted functions, there are some ahk scripts that have been posted around here that will, for example, send an "ESC" if you hold down a certain button for about 3 seconds.
Scott