macOS Sequoia to Allow iCloud Logins in Virtual Machines on ARM Macs

Disclaimer: IANAL, just someone who's work has at many times involved working alongside lawyers drafting contracts.

As always, the problem most armchair legal "experts" forget is you have to consider the agreement in front of you as a whole (and also in the broader context of the contract's jurisdiction). You can't go cherry picking individual clauses.

In your case, we can easily prove your "bug" claim to be erroneous ...

1. We start with the very area you highlight. There are a number of things I could comment on here. But let's stick to one ... note the references to "Apple Software", note in particular the capital letters. This means "Apple Software" is a defined term.

2. All we then need to do is look back and we find the origin of "Apple Software", which is on page 1, the very first clause, 1A. Its a chunky old clause but the TL;DR is its telling you the license agreement applies, both the current version ("Original Apple Software”) as well as any future versions (“Apple Software Changes”) in whatever form they may take ("whether preinstalled on Apple-branded hardware, on internal storage, on removable media, on disk, in read only memory, on any other media or in any other form").

3. Clause 2, as its title suggests, is mostly concerned about "Permitted License Uses and Restrictions". The "how you got the software that is subject to these permitted uses" is, I'd say, largely dealt with in the original definition of Apple Software.

A Mac studio could probably run a dozen or more VMs, but Apples artificial limit makes it very hard to make Apple Silicon build farms.