Is "Any individual developer can use Visual Studio Community to create their own free or paid apps" really that hard to understand? The other stuff reads as "if you have more than 250 PCs in your company, buy the damn thing." The exceptions they make are totally in developer's favor and proof that no matter what Microsoft does some people will bitch.
Well, that is bound not to be the binding legal document here, there must be quite a long contract that actually defines the terms. Nothing to do with Microsoft necessarily, that's just how lawyers are.