I hope this answers your question:
You are allowed:
- to use these sprites in your games/VNs (both commercial and non-commercial)
- to edit the character designs in order to fit your game/VN better
You are NOT allowed:
- to sell these sprites (even the edited versions)
- to reupload these sprites to any websites (even the edited versions)
Not a strict rule, but it would be nice if...
- you credit me ("character sprites by AnankeKeirin" or in case the designs have been edited "character sprites by AnankeKeirin, edited by <name of the person who edited the sprites>")
- send me the link of your finished game/VN
If by "Tearms of Service" you meant something else, please let me know (English is not my native language).