You are right, licensing could be an issue. But as others said this is not a retroactive law, so new software must be developed accounting for a "free" redistribution. Hardcoded paths are just bad practice.
Never said it's easy, but it's not that hard. At my job we are required to deploy the whole server infrastructure on-premise, so we only use software with MIT license or something that allows us to distribute to our clients without disclosing the source code. We've been doing this for the last 20-ish years, our software accepts easily hundred of thousands of connections and with Docker and similar tech the whole thing can run on standalone PC (with performance limitations of course).
It's not easy, but it's doable. And that it's all that is required by this proposal.