You may not make the functionality of the Software or a Modified version available to third parties as a service or distribute the Software or a Modified version in a manner that makes the functionality of the Software available to third parties.
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x = “make the functionality of the Software or a Modified version available to third parties as a service”
y = “distribute the Software or a Modified version”
You may not X, or (Y in a manner that X)
Perfectly normal legalese. Just like “included but not limited to…” it sets a condition and adds a more specific version of that condition, which seems redundant but helps during actual litigation.
I don’t see anything wrong with the quote? Other than the policy itself being a ridiculous change, the wording is pretty standard legal speak. Not sure why you’re jumping to “ChatGPT Lawyer”
You may not X in a way that X
Definitely reads weird to me. It should suffice to say “you may not X”.