You may make production use of the Licensed Work, provided such use does not include offering the Licensed Work to third parties on a hosted or embedded basis which is competitive with HashiCorp's products.
Read benevolently it's a prohibition from spinning up a service based on HashiCorp's code and undercutting HashiCorp's pricing.
On the other hand, if I build a product with HashiCorp-owned BSL'd code, then HashiCorp releases/acquires a product that competes with mine, then my license is void.
On the other hand, if I build a product with HashiCorp-owned BSL'd code, then HashiCorp releases/acquires a product that competes with mine, then my license is void.