The new emmision amount in the setEmission() function of the BaseGuage abstract contract should be compared to _maxEmission and not periodState.emission
This little oversight would cause the emission cap to get increasingly smaller as a lesser emission is set, because the periodState.emission rate is set to the current emission. Lets us consider a scenario where _maxEmission is set to 1000 and the controller for a particular period sets the current emission to say 50. Subsequent setting of a new emission amount would be capped at the previous amount which is set to 50.
The Gauge controller is unable to set a higher emission than a previously set emission
Manual Review
Create and use a seperate _maxEmission state variable for the cap for emission amount
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