In context, it’s not to anoint [anyone but a descendant of Aaron, or anything but one of a specified list of holy objects] with the anointing oil. There’s also a recipe given for the anointing oil, specifying stoichiometric proportions, and the list of what and whom to anoint is quite detailed - and then ‘don’t anoint anything or anyone not on the list, and don’t make any other oil that smells like this stuff.’ The specified penalty is shunning, not death.
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