I read that as no child porn. since I don't know that an image can be "in a manner that is obscene, sexually explicit," but the object of an image which would be a child in this case could be.
But since it's a legal document the best thing to do is consult a lawyer.
As well as content that "incites bigotry, hatred, or racism." There goes social media, I guess
I doubt they'll be actively censoring. This is just a CYA sort of thing, so they can't be accused of abetting bad actors. I'm pretty sure your pron surfing will still be OK.