Dumb question for my European friends: I’m an American CD who lives in the U.S. But I have an Irish passport. Could I legally freelance for European agencies / clients?

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So long as they’re in the EU, I guess so. Sadly that rules out the UK ‘cos of our high proportion of Brexit nutters.

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As far as I am concerned, that’s up to the agency rather than a stated “law”

Yes you can, open job market for EU members when you’re in the EU with registered business/freelance license. As a US resident though, you’ll have to check with each company. Might be an issue for them, or not.
I live in the Netherlands and have contracted freelancers and had American clients.

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