As a business owner I consider AGPL the same as a closed source. It's a thing I need to pay for and I'm not about to contribute free labour to it the same way I wouldn't contribute to any other commercial closed source entity.
(This is just me describing reality. My private software is under AGPL to a significant extent, but I understand why my employer's legal dept does not like AGPL.)
I completely understand organizations banning AGPL software. Having an employee mistakenly violate the license is just too great a risk. The majority of AGPL projects seem to be offering the same product on a different commercial license, which is the only way I'd use an AGPL project. E.g. paying for a non-APGL license to use it without the risk.