I am not a member of the team or anything. I found this on tiktok. But it is open source so I checked the github repo. They do not distribute a pre-activated image, all images need to be activated using a windows key. So in that sense all they are really distributing is a configuration of windows, that is also mostly what their github repo[1] is. But I see the issue there too as I don't think even sharing unactivated windows is allowed. But worst comes to worst, they can prepare instructions on how to install their stuff with an image downloaded from microsoft website. They are not writing a new windows, its more like they are figuring out what bloat is there in windows and removing it.
Edit: They actually already have instructions on how to use their scripts with a windows image downloaded from microsoft website [2]
There's a breakdown on the legality of redistributing modified Windows ISOs by NTLite staff on their forum.[1] The Atlas team uses NTLite. Relevant bits:
> You're permitted to only use official images provided by MSFT or authorized partners (VAR or reseller). You're not permitted to use a random image found on the Internet to start your customization (even with a valid license key).
> You're not permitted to share copies of the original media, or any customized images you make. You can deploy images on behalf of another party who already owns a correct license for their own internal use.
> Bottom line: You're allowed to modify a clean image if you own a license. You can't redistribute it, but you can share NTLite presets, scripts or instructions that allow other licensed users to perform the same work. Everyone must have their own OEM, retail or volume licenses.
EDIT: They appear to be claiming "educational use"/EU 2009/24 protection, which, well. Good luck.[2]
Edit: They actually already have instructions on how to use their scripts with a windows image downloaded from microsoft website [2]
[1] https://github.com/Atlas-OS/Atlas
[2] https://github.com/Atlas-OS/Atlas/blob/main/src/README.md