Am I allowed to distribute a game in which I do not obfuscate this asset pack within the code somehow? (hiding the raw image data in code or encrypted format) Typically I would put it in the assets folder of the game directory but not sure if the license allows me to do so as that may be considered distributing the art. I will definitely give credit to the art, probably in either a README file or the Credits inside the game.
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Note that since I'm coding the game using a game library in a regular programming language such as python using a regular IDE, I'm unable to release the game without also having the assets as part of the game directory somehow in which case people have direct access to the assets. Note that I may find a way to compile the game and assets into an executable format or encrypted format but that is not preventing people from also decompiling it.