I think the distinction being made here is between the source code (which is remaining open source) and the binary (which is effectively becoming proprietary).

I think the distinction being made here is between the source code (which is remaining open source) and the binary (which is effectively becoming proprietary). Users would no longer have a right to redistribute the binary, since it would no longer be open source. (To my understanding, this is similar to Microsoft’s “trick” for discouraging VS Code forks: VS Code and many of its core extensions are open source, but their builds are not.)