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Neither are building from CentOS Stream - they are building from the same source that is in the final RHEL release, not a rolling release like CentOS Stream.

How? Rocky Linux is a RHEL clone, and RHEL isn't a direct copy from CentOS stream

I thought they were using git.centos.org which used to be the RHEL sources?

Centos stream sources are what will become the next RHEL major or minor release. So if(?) RH is adding further stuff on top of Centos stream after forking those changes would not be available to non-customers?

Then why is Red Hat doing this?

Management doesn't directly know the pain of an engineer. This business heirarchy is akin to management being the body's "hands" while engineers are the "feet". This easily accommodates the option of shooting one's self in the foot.

Because they're just IBM with a hat on now.

One of the FAANGs has/had exclusive deal with Oracle for Oracle Enterprise Linux, as Oracle charges a way less than Redhat does. Redhat/IBM figured out how many large enterprises use Oracle Linux; now they want to go after those enterprise customers to show more return on investment, as IBM paid $34B to acquire Redhat.