That sentence seems pretty misleading to me, as it implies that "religious freedom" was something that really even existed at that time. Neither side wanted "religious freedom", they just wanted their side to win by exiling, killing or converting adherents on the other side.
[0] https://en.wikipedia.org/wiki/Peace_of_Augsburg?wprov=sfla1
> It officially ended the religious struggle between the two groups and made the legal division of Christianity permanent within the Holy Roman Empire, allowing rulers to choose either Lutheranism or Roman Catholicism as the official confession of their state. However, the Peace of Augsburg arrangement is also credited with ending much Christian unity around Europe. Calvinism was not allowed until the Peace of Westphalia.
That is, basically this carved up the middle of Europe into Protestant and Catholic areas, but in no areas was there really "religious freedom" as we think of the term today.