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I think they mean the used assets would be in a folder (e.g. 'assets') where if you 'install' the game that folder is accessable (like with old games such as doom where the files are changeable or take-able/modifiable or such as elder Scrolls oblivion where we can take the art/sounds etc..... If we wanted).

I could be wrong.. but that's the overall impression I got.

Maybe they could encrypt the used assets or something to make accessing them not worth the time or effort & include a copywrite notice.

Yeah, I get that! I’m not really worried about that part since I know people will find access to any kinds of assets if they want to but at least if the OP will make it clear that my license doesn’t allow to “steal” assets, I can have some ground to argue!