Neutral Ground Pact

I am in a game in which the two AI outvoted me to have a "neutral ground pact."
It said it was permanent and would prevent enemy warships from entering the
territory of others. The only victory condition is a military victory.

Does this nerf the entire game? Or, are there ways around it? Or maybe I don't
understand it?

I hope I don't restart the game.

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There's a way around it. Leave the United Planets. You lose all your trade income, but you don't have to stand the limitations they put on you.

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Isn't that resolution merely a means to stop sneak attacks? I believe that it only forces your ships out of their territory when you attack them, not that it stops you from making war once hostilities have already started.

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Indeed in only stops sneak attacks. In practice this means that you can still attack, it only puts some time buffer between your first hostile intention and the first point in time you can actually attack.
Just go ahead and pound those AI's, keeping in mind the time buffer

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