Codeberg market themselves as not just a host but a community, so mass banning projects that didn't do anything wrong and were previously operating within the rules feels more like rejection from a community rather than a business decision made of necessity, especially the way the decision came about via some quasi-democratic process.

Codeberg is a German e.V. claiming significant benefits from society, including tax-free status.

The argument “they can do whatever they want” doesn’t hold water. They are using legal privileges that other institutions don’t have, based on the assumption that they operate for the public benefit. I’m not saying that their current rules automatically mean they don’t live up to that claim, but it’s certainly worth a discussion.