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I'm using the same EULA for games and assets for convenience since a lot of the content would be the same. The line you're referring to is for my games ("Games" in the EULA), it doesn't apply to engines and other asset packs ("Assets" in the EULA).

The only thing I'm asking for this engine is, don't let other people (outside of your team) have the source code, only compiled game executables. So making a game with this engine and distributing that is totally OK. Uploading a copy of say, Dracula's Tower to Steam and claiming you made it is not OK.

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Gotcha, thanks for the clarification! I have the engine bookmarked for when I'm up for the FPS challenge. (Best GMS FPS Engine that I have found)