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They are arbitrers of what projects they allow hosting on their servers. What's baffling about that?

I don't think American laws such as s230 apply here, as Codeberg is German.

If you want to be the arbiter of what you make, throw an instance of https://forgejo.org/ online. It's practically the same as Codeberg except you get full control.

Create your own server and pay for it and they won't have anything to say about what you do with it.

It's absolutely hilarious that vibe coders see themselves as some sort of protected class who are being discriminated against and think they can use the law to force an unrelated third-party to host their files for free. AI psychosis is a trip.

When from what I have understood they can easily deploy fully featured alternative in afternoon or less. Just take a single weekend and they have as good place to host their code ready, tested and secure. So should not in anyway be a big deal for them.