I'm no lawyer but from what I understand about distillation, it us illegal for safety concerns and not the finished product itself.
Correct me if I'm wrong here but I think most Apple jack uses the freeze distillation method where you scoop the ice off of an already freezing batch rather than heating it to boil off the alcohol. The distillation tank can produce bad alcohol variants like methanol if not done with the right equipment and procedure.
I do not think producing Apple jack using freeze method is illegal but again, I'm no expert.
That said, selling anything alcoholic at all is illegal without an atf license (us brewing). You're allowed to make wine beer cider for your own consumption up to a limit, but its some asanine number that you'd have to drink all day every day to hit it.