Calling open-weights as open-source in marketing materials is the usual misrepresentation. But now with the restriction on commercial use (which is against opensource definition) it is not even open-weights, technically it would be more accurate to call it weights-available.
And the only reason source available had any significance is that you could look at something and understand it. Weights are much much more opaque.
It's just freeware.
Though weights can be finetuned and quantized.
Is it legal in this case?