Agree that in this case, the circuit acts like a fuse. A fuse however has other factors involved such as it’s own resistance to which a circuit can be developed to mitigate that increase in resistance.
Example in the most layman’s terms. A 6 amp fuse could increase resistance by 0.5 ohms, a circuit, also 6 amp limited might increase that resistance by 0.05 ohms. These are not actual numbers but examples.
A circuit could limit output, but in this case it does not – it breaks the circuit if current is exceeded. And yes, one time limit when exceeded.
A Mosfet could be implemented into the circuit (IC) , but a Mosfet alone cannot protect the battery