Preparation means getting ready for something. here, that almost certainly means redistribution.

You're not breaking the law if you scribble notes in the margin of a textbook; that's just crazy. Even if you pass that on to a friend, for that matter.

Anyway, if a license tries to rely on such draconian doctrines to prevent uses, it's obviously not a free license.

That is definitely not what the word prepare means in that sentence. Its more like the meaning in the phrase "prepare a meal".

I'm guesssing that likely intent is so that the authorities could raid a large scale copyright infringment operation, and obtain convictions based on evidence of perparation alone. I.e. not have to catch anyone red-handed redistributing the prepared materials.

Kind of like how cops in some places in America can evidently arrest someone for DUI if that person merely walks to their car with their car keys, intending to sleep inside until sober.