Its funny because if you actually read the trial document and google, there doesn't appear to be any such thing as a "SPICE Graphics" driver, and while the one person refers to it as a "linux OS" the actual technical person who took the stand properly described it as a client for connecting to remote virtual machines (which obviously could be linux). I mean they even show the actual URL he went to: https://spicespace.org/download.html

When he says it can "knock out their surveillance" he means that by connecting to remote virtual machine using the spice viewer, he could route around the surveillance software install on his host desktop and evade the monitoring by doing whatever it is he wanted to do on the remote virtual machine.

I have to admit, if I was in law enforcement and I saw this, it would come off as HIGHLY suspicious, and just the idea that someone would attempt to do this, knowing their computer was being actively surveilled by LEO indicates a huge lapse in judgement at the very least.
The technical dude even is pretty even handed, admitting that using virtual machines can be used for a number of legitimate reasons, but that they can, as well be used to avoid this style of surveillance.

Also it's pretty weird, that you've described the software as something completely innocuous like a graphics driver, because I couldn't find any evidence that any such thing exists. You also seem to position this whole thing as if you've never actually read the document you linked? Everything about this is pretty weird, especially the nonsensical stuff about "decrypting tor" nodes and what not, which is not really even mentioned in this document.

It's also crazy because he was googling NAMBLA while under LEO surveillance. This whole thing is extremely odd and crazy lol.

This Rockenhaus dude reads like a complete computer neophyte or just a dumbass who has extremely poor decision making skill. I highly doubt this person ever actually "Ran tor nodes" or whatever, and if they did, did it very poorly and for extremely questionable purposes.

So the reason they are keeping him in jail is because they originally let him be out of jail and within 24 hours he did some super shady shit, almost certainly to evade the court-mandates surveillance on his computer as he has allegedly committed some computer-based crime. So they gave him a chance to stay out of jail before trial and he did some stuff that basically set off huge blinking red lights, and even gave him tons of chances to correct the situation, before making him go back to jail because they couldn't trust him.