Honestly you're probably right, code is a better term. I copied that language from Colorado's SB26-051 bill which also has a FOSS exemption and they use the word "software". I'm not a lawyer but I'm hoping that a court's interpretation of one state's language will apply to other states.
That and lots of FOSS licenses use some variant of those words "copy, redistribute, and modify" so it's probably a term-of-art that courts recognize.
This is what Colorado's law says. It prevents Tivoization but not feature nerfing like the Play Integrity API.
§ 6-30-105 (3)
(e) AN OPERATING SYSTEM PROVIDER OR DEVELOPER THAT DISTRIBUTES AN OPERATING SYSTEM OR APPLICATION UNDER LICENSE TERMS THAT PERMIT A RECIPIENT TO COPY, REDISTRIBUTE, AND MODIFY THE SOFTWARE WITHOUT ANY PLATFORM-IMPOSED TECHNICAL OR CONTRACTUAL RESTRICTIONS IMPOSED BY THE PROVIDER OR DEVELOPER ON INSTALLING ALL MODIFIED VERSIONS.
I suppose using the broader term, software, doesn't hurt FOSS. It just might extend the law to others.