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Understood, but I guess part of my question with that is if we modify sprites from here, does that grant us the right to then sell/send them? Some of these sprites look fairly identical to ones found in this generator:

So I feel like its difficult to understand how our modifications can be differentiated.

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you can edit them to fit your project but you can't send/share them with anyone or resell them, also I did edit all the characters for the new version and the license will be the same for all the art in this version or the upcoming ones, I don't understand what you want to do with the app but if you want to create a character generator in your own game and you want to sell the game it's ok because in that case, you aren't sharing the assets with anyone but only you are using them in your project.