As others have said, it’s starting with the finished product, slowly disassembling it, and testing each component to see how it interacts with other components, either physically, electrically or via code (or controller). The process becomes more difficult the more complex the item being reverse engineered is.
There are limits, however. Highly complex items are almost impossible to reverse engineer due to the amount of manpower, years of development, and proprietary tech to get to that item (e.g., high-end photolithography machines for chip manufacturing). Some technology may be mechanically understood, but the material sciences behind them may not (e.g., the metallurgical process for manufacturing jet turbine blades is highly specialized/proprietary).
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