If they went out of business, then there would be a fork of their projects which would be adopted by some foundation or a new foundation would be created. It would be clear that these forks are where new development would be happening and everyone would migrate to them. If Terraform is forked now, there will be two Terraforms, bringing all kinds of complications, so going out of business is definitely different.
I doubt that. For companies using HashiCorp products just to manage their internal IT stuff the license change only affects that if their business is providing products or services that compete with the HashiCorp products and services they use.
I would be surprised if more than a tiny fraction of their customers do so.
Nobody has any clue what "competing with Hashicorp" actually means now, or what it might mean in the future (what if Oracle buys Hashicorp?). It's vaguely defined deliberately.
Most businesses don't like to take vague legal risks.
