Yeah, it really looks like it was wrote by a lawyer who know near to nothing about computers. People were already ripping music from games in the early 80's, and since nothing prevented them to continue. Of course, it's possible to complicate their task, making it possible for only a bunch of people really determined to do it, but that's all ; even hardware DRM can be bypassed, so effectively preventing "items incorporated into end-products to be extracted
", is pure utopia.
But the second sentence, "you must take all reasonable steps to prevent this from happening", is more interesting.
I remember that I'm not lawyer, it's just my thoughts, but coding the music in Base64 (or other), storing it in a RPA file, and releasing only the rpyc files, seem to be reasonable steps ; it should prevent at least 99% of the people to access this music. It's not 100% secure, but as I said previously, nothing is 100% secured. Even if you were using your own game engine, wrote in a compiled language, and then stored the music Byte by Byte with random data between each one, and finally encrypt the result, it would still be possible, for someone determined, to extract the music then use it without your end-product.
But, this being said, I think that the question you should ask yourself is: Is this really worth it ?
I mean, is this music really so exceptional and unique, that you can't find something similar that wouldn't really cost you more, while not forcing you to do all this additional work ?
It's not too difficult (relatively speaking) to store the music in Base64, then play it in Ren'py. But you'll need to make a small script that will turn it into Base64. Then your game will have to turn it back into its normal form soon enough for the player to not notice a waiting time ; what probably imply the use of a thread. This while keeping the said "normal form" into the RAM, what probably imply a small rewrite of Ren'py's core ; because if you store it on a cache it would become available and break the license.
Be noted that the same would apply for any other game engine. The only difference being that some of them, like Unity by example, works natively with music stored into the RAM ; but it just remove one of the steps needed to comply to the impossible terms of their license.
What lead to a rephrasing of what
toolkitxx said previously: wording that ask you for the impossible is usually a warning sign especially if it is part of a legal text.
They clearly don't understand how both digital media and software works, therefore you can't predict their future actions. Since they ask for something that no one can do, at anytime they can decide that you aren't doing it and sue you for this reason. Of course, you would surely win in justice, but at what cost, both in time, stress, and money ?
So, yeah, is this music really worth it ?