Good clarification, pdubs. It seems a university like St. John's might not be exempt, but its School of Theology might be.
If true, it's still strange to me that school with a non-free graduate degree in liturgical studies would be exempt, but an online school offering free courses in science, business, history, etc. would not be exempt.
Liturgical studies by a religious organization are specifically protected under the the 1st Amendment[1][2]. Schooling has been a state domain for a very long time (look at Texas and California's influence on textbooks). The regulating of schools does not violate the US or MN constitution.
I agree it's strange and I'm not sure how the letter of the law is being applied to Coursera, but it seems like this wouldn't even let a qualifying religious program give a B.A. or B.S. in Theology, more you'd be able to get a "certificate of congrats you can be a minister for our church". Also protects VBS and confirmation class type courses.
If true, it's still strange to me that school with a non-free graduate degree in liturgical studies would be exempt, but an online school offering free courses in science, business, history, etc. would not be exempt.