Honestly, for me, both.

While I can't find something specific about it in the new ToS, the new blog post notes that "side projects and experiments", and "specific tools and custom scripts that would be unlikely to find a community anyway" are "discouraged", but are "tolerated in practice" if they only use minimal resources. This is stated as being regardless of LLM use. So some of my repositories are apparently already borderline in the community's opinion (it's not clear how they judge use of resources, but I only use self-hosted runners).

But there also seems to be an increasing sense that many active members see Codeberg as a space for a particular type of FOSS, within a particular, normative view of what development and communities should look like. This ties into the "side projects and experiments" comment, and to the general tone of the AI blog post on what they want Codeberg to be and not be. The point about "projects with a single developer and virtually no users", about "large ghost projects", and so on, are within the context of AI, but are derided in a wider sense.

Some of my repositories look like single developer experiments with no users or community, but aren't. I'm ultimately a scientist, not a typical developer; users typically communicate by email and at conferences, and cite my software and associated papers in their papers rather than starring repositories on forges.

And yes, much of the discussion around these questions often falls into the argument that projects that are good will be fine, because they'll be accepted despite the rules, and that any concern about specifics is unwarranted. But I can't know that I won't be targeted by Codeberg having an increasingly normative view of what 'proper' community development looks like.

(Yes, I realize I'm free to use something else. I'll likely end up moving my repositories off Codeberg and onto some combination of my own Forgejo instance and Github. The lack of federation in Forgejo heavily penalizes not being on a major instance, however. Meanwhile, as much as I encourage using DOIs for citations rather than URLs, people often do the latter, so staying on an instance that might decide to ban my projects can create lasting problems: one of my whole reasons for starting to migrate to Codeberg was because it seemed organizationally stable.)

My read of the "side projects and experiments" part of the blog post is that, in the context of LLM projects, if your project does not use resources and isn't looking to attract a community then, if only due to the practicalities of moderation/enforcement, they're unlikely to take any action against it because it won't be visible or causing enough problems.