Is using Windows PE copyrighted or still free?

Question

Windows

Interested in the question of what I'm breaking, using any of the many LiveCD and LiveUSB based on Windows PE. On the one hand, it can be observed that their use is not prosecuted in any way, the corresponding images are freely distributed, their exchange is not blocked in any way. On the other hand, judging by the content of popular WinPE builds, there is almost a fully functional OS! Why such a different approach?
Wikipedia says that the use of Windows PE was previously regulated by a license such as SA, OEM or ISV, but in version 2.0 this restriction was removed (currently already 4.0). This means that you can (and quite legally!) take one of the WinPE assemblies for free, install the necessary software on it, carry it on a flash drive to work and home, work and have fun, and everything will be according to the law - unlike full-fledged Windows. Did I understand correctly?

Answer 1

WinPE 3 is included in the Windows Installation Automation Kit (WAIK). The license for WAIK 7 says:

You may not
...
• make more copies of the software than specified in this agreement or allowed by applicable law, despite this limitation;
• publish the software for others to copy;
• rent, lease or lend the software;
• transfer the software or this agreement to any third party;
...
Windows Pre-Installation Environment. You may install and use the Windows Pre-Installation Environment for purposes of diagnosing and recovering Windows operating system software. For the avoidance of doubt, you may not use the Windows Pre-Installation Environment for any other purpose, including without limitation as a general operating system, as a thin client or as a remote desktop client.”

That is, the only licensed use of WinPE 3 will be Windows diagnostics and recovery. Any other use is not permitted.
I did not find Eula for WADK 8 (WinPE 4), but most likely there is similar content.