I've seen similar restrictions in other websites and I could argue that the lawyers writing these TOS are either clueless about SEO or very aware of how SEO works (I know I am citing the 2 opposite but I'm explaining why below).

Clueless about SEO: I have no idea why a website would like to limit another site from linking to it. It is counterintuitive and would likely go against the same site's SEO strategy.

Aware of how SEO works: I could argue that lawyer knows how SEO works and are just trying to cover their assess if they'll need a link removed in the future (I doubt they'll never use that clause legally against someone unless they really need to). Why would they need to? I've heard of some black hat SEO stories where certain individuals would link with a farm of sites that are either flagged or irrelevant to another site all in hope to get it flagged or down in google ranks. I'm not sure if that would work and could question the motivation of these individuals but I've even personally witnessed trackbacks and links from "porn" sites and irrelevant sites to my website and blog. These lawyers could potentially use that clause to sue that individual without having to prove there have been any damages from the links.

I would go with option A however since I'm not sure this is the case here.