This tends to leads to systems that don't work and die on real-world edge cases.
The idea that "accepting all the inputs" somehow gives you an advantage is an illusion: If the semantics of some input are not well-defined, then the only thing you gain by accepting it anyway are hard to debug interoperability problems and vulnerabilities. When some input is not well-defined accoridng to the spec, then your interpretation is just a random guess, and the next developer will make a different random guess as to what that input means, and so an interoperability problem and potential vulnerability is born. If you reject the invalid input, you will notice the error and thus fix the source of the invalid input to produce input for which the semantics are actually well-defined.
Requirement: Name input box.
Implementation: We'll sanitize the input by rejecting any characters likely to be dangerous if mishandled, like single quotes, or anything else we don't immediately imagine to be useful. If a character turns out to be needed later, that's no problem. We'll just change the list.
Security audit: Passes
Later customer complaint: I can't sign up! — J. O'Brien
Dev team: Sorry, too bad. We'd have to re-audit everything and possibly modify code to allow your last name, because there might be code somewhere that relies on the original sanitization for security. That was the point of sanitizing on input, after all. If you want to sign up, it would be easiest for us if you would just change your name.
So:
Name input field, value "J. O'Brien": accept
JSON parameter, value "{foo:bar}": reject
The context was the idea that you should gracefully accept bad input. If your code considers "J. O'Brien" bad input for a name, then that's the problem, not that it doesn't accept bad input.
The issue is that when developers hear they should "reject bad input" in order to avoid vulnerabilities, they often interpret it as a call to reject any user input that isn't already known to be good. Since user inputs are often free text, like the name field, they wind up forbidding any input they hadn't specifically imagined, which doesn't align with any particular recipient's actual data requirement. It creates false-negative edge cases while only providing illusory help against vulnerabilities.