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They should. The employment contract you signed explicitly precludes side hustles. Don’t equate a failure to prosecute with lawful behaviour.
Several reasons. You could misappropriate intellectual property of the employer. You could compete for the employers business. Deliver less than 100% for employer because you’re saving your resources for the side hustle. The list is endless. End of day, like marriage, most employers want exclusivity.
Generally, they do care. Safest route is getting written approval for studying or a side hustle, but that depends on the jobs and your relationship with your employer.