It’s possible to have laws that increase freedom overall. For example: a law against murder restricts some people (the murderer) but frees many more people from (their victims).

Markets can be regulated to make them more free as well - if we pass a law to enforce mutually agreed upon contracts, some people (those that would go against the contract) have their freedom restricted but the market as a whole now has a trust mechanism allowing them to actually hold others accountable and thus overall it improves society.

“Free market” still implies certain restrictions, like “no stealing the other person’s stuff”.