One practical problem, even for developers who are fine with licensing their code to whatever open source license is easiest, is that not all open source licenses are AGPL compatible. Take for example the Mozilla Public License, which is inherently incompatible with AGPL because of the terms imposed; this means that any project using MPL licensed libraries could no longer be linked with Mold.
License incompatibilities can be a huge pain (see: ZFS + Linux). If you develop software for yourself this isn't a problem, but if you intend to distribute your software this becomes more of an issue.
This is probably also the main reason why normal linkers/compilers don't impose licenses on the produced work.
The issue was that they wanted to claim that AGPL was contagious - That by using mold, your outputs would also be required to become AGPL.
The unusual thing here is that the creators of a linker are apparently trying to have the copyleft licence propagate to code that is input to the linker. Others have pointed out that GCC has exceptions for this kind of thing, despite that it is released under a strong copyleft licence (GPLv3+).
Also, your account of copyleft is still incorrect. It's true of the GPLv2 and GPLv3 licences but not true of all copyleft licences. The AGPLv3 licence, which is the one relevant here, doesn't apply only on distribution.
[0] https://www.gnu.org/licenses/copyleft.en.html
edit I think I was mistaken in putting propagate to code that is input to the linker, though. As lokar's comment points out, it's instead about the output of the linker.
Not sure we can say that a linker is the same as a compiler in this sense, but if so, maybe it is indeed worrisome.
[0] https://sourceware.org/git/?p=binutils-gdb.git;a=blob;f=READ...
The standard compiler license exception (this applies to LLVM to, e.g.) says that any such code that gets combined in with your application code doesn't count. Note that it's still a potential license violation to use that code elsewhere (say, using those routines in another compiler).
This isn't a concern for linkers because linkers don't really provide anything in the way of code, everything being provided by the compiler as a compiler or language support library. The largest code it might add to your program is probably the PLT stub code, at best a couple of instructions long.