Sure, but the TOS you quoted is from 2019, meaning the quote is more recent than that. And here’s Mike in 2021:
Continuing the discussion from Developer Let's Play with Q&A - Transcribed [April 2nd Stream]:
This is the data which is most readily available when searching for their position on mods; if you have something which is actually more recent and which is reflective of a different stance, you’re welcome to share it. Until then, it’s odd to complain about the age of something and then reference something even older to support your argument, given that typically agreements can be superceded by subsequent mutual agreement between parties.
And yeah, backing up your saves, deleting them, renaming them, and otherwise taking actions to correct file corruption is fundamentally different from modifying the contents of the game files to replace visual effects or otherwise mod the game, or from modifying the contents of your save files to edit the items, stats, or characteristics contained within. That’s why it’s two different items.