Ultimately, your compliance with this and other terms of the TOS depends on how you, the user, interact with the game. The game is a sandbox and your engagement in erotic scenes--and how pornographic they are--depends on your own choices.
That being said, the following facts may be relevant to you.
1) Despite the CYA boilerplate in the TOS, the Command R+ model is so pornographic that enterprise clients regularly complain that it turns e.g. customer service interactions NSFW. I can provide examples from the official Cohere Discord if you'd like.
2) In practice, it is almost exlcusively used for NSFW roleplay. The model is not performant relative to industry leaders like GPT, Claude, etc. and the only advantage it has is that it is uncensored, unlike leading models. This is a choice Cohere has made to differentiate themselves.
3) You do not need to identify yourself to Cohere to receive an API key. A burner email will work.
4) I have found no evidence of anyone ever being banned for a TOS violation of this sort, or even more obvious and egregious TOS violations such as users creating up to 17 (!) free API accounts for erotic roleplay. I do not suggest you make numerous free accounts to evade their free tier limits as it is certainly against their terms, but mention it to illustrate the degree of enforcement even on issues that are far more salient to them due to the huge compute cost of serving unlimited free API calls to individual users.