The Torah is saying that we have a choice between surrender to God or to the Ego. Here 'God may be interpreted as a Divine being separate to ourselves or as 'Being' and the essential part of ourselves.
Either way, freewill is not evident except in the choice of who or what governs our behaviour. If we surrender to a conjectural God we must act as we believe He would. If we surrender to our innate Being we must discover it and act accordingly. If we surrender to the ego then we are at the mercy of our beliefs, conditioning and temperament. In all case freewill is not evident except in the singular choice of whose rules we follow.
Yet that choice does seem to be a free one and thus to qualify as freewill, albeit that the choice is so limited that freedom hardly seems to be the right word.
The Torah is not alone in its view of freewill but gives what may be the most common view in religion and mysticism. This would explain, for instance, why Islam promotes surrender to God not freedom of action, which is bound to be egoistic thus not free, and why Buddhism does not blame the misuse of freewill for our troubled lives but ignorance of the facts of our situation. It also explains the statement by Jesus in the Gospel of Thomas that sin, as such, does not exist. This would be because we do not have freewill beyond our ability to serve the master of our choice, as suggested by the Torah.
Whether even this choice is actually free is not clear to me. It seems possible that it is only by acquiring some knowledge of God or Being that this choice becomes available to us, and if we have sufficient knowledge it may no longer be a choice but might seem to be a necessity.
All in all it's difficult to see how pure freewill makes sense. Even a monotheistic God must follow His own nature.