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A legal battle over cannabis business licensing in Illinois could overturn the state’s residency requirement, throwing a wrench into the already dysfunctional process and attempts to diversify the industry. The litigation is just the latest in a series of lawsuits that have kept much of the state’s legal cannabis industry in limbo. But there are signs the logjam may be breaking. A Cook County judge in another case has indicated she may lift a court injunction against issuing 185 pending recreational store licenses and hold a corrective lottery to remedy complaints about the licensing process. …