AGPL is fine for open source projects. It isn’t really useful for a commercial closed-source or even an open-core codebase in some cases.
On the other hand, usually that’s the intention when a project selects AGPL. There’s usually a commercial license you can buy instead (see iText for example).
It isn't fine because it will come up in due diligence as a risk, every single time. It's easy to say "it's fine", and in theory I agree with you. But it's a cost that doesn't make sense if you know what the auditors are going to say and expect. Auditors flag even more benign things than the AGPL, but to pretend it's not a thing is just whimsy.
On the other hand, usually that’s the intention when a project selects AGPL. There’s usually a commercial license you can buy instead (see iText for example).