Since there are no prizes, and its not a competition, how come we need to provide source code? What sort of licensing is involved there? Just curious in case we wanted to use the game jam to kick-off/bootstrap a larger project
The purpose of the jam is for anyone to look at your source and learn from it. Under US copyright law, you own your work by default. You may include a license file with your source stating it's viewable for educational purposes only. If you are uncomfortable sharing your source, you cannot submit to this jam.
As for strangeness, the largest game jam in the world (ludum dare) requires source as part of submission for the compo.
See the top-voted answer in this link about just throwing a copyright notice into your project (can just be a text file called COPYRIGHT).
https://opensource.stackexchange.com/questions/2907/does-the-owner-of-the-github...