1) If you host the software, and say "hey get your Sentry over here", that's basically a substitute.
2) Means use the work in such a way where you expose its APIs (i.e. the software is returning API responses). Note this is written as "using the software ... in a way that exposes the APIs of the software".
Perhaps this could be made more clear, but I believe this was written with the understanding that there is prior art on the copyrightability of APIs, not some feigned attempt to assert a copyright.
3) If you're building some kind of software observability platform that leverages Sentry.
If you're concerned about doing any 3 of those, then yes, perhaps you should not use the software. Overwhelmingly 99.99% of software people aren't doing anything remotely close to any of these clauses.
I'll also note that Sentry itself was licensed for 4+ years under BUSL using similar terminology (that was arguably far more vague). The inclusion of non-competitive language in the license did not stop users from using the software – because again, most people aren't competing.
You're welcome to make your own decision, of course. No one is forcing you to use anything.