As I understand it, if you exercise your rights to distribute the RHEL source code, Red Hat may terminate your gratis license.
It’s like if you let me in your house, let me use your stuff, and then you ask me not to break something and then I break something and you kick me out and I get upset.
The open source license already says you can go into the house and do whatever you want, including breaking something and kicking you out.
Your additional instruction to not break something goes against the rights initially granted.
To make it worse, one is covered by copyright law and the other by business contract law.
The problem is RMS and all the people supporting FOSS and the GPL say Red Hat, and any other company, are well with in their rights to have that clause.
And this causes people, who didn’t pay for RHEL, won’t pay for Rocky or Alma or any other clone to hate a company they never supported.
Unauthorized Use of Subscription Services. Any unauthorized use of the Subscription Services is a material breach of the Agreement.
Unauthorized use of the Subscription Services includes: [...] (d) using Subscription Services in connection with any redistribution of Software