I predict that Codeberg will soon realize that they have no choice but to loosen and allow AI generated code.

There is no point in being on the extreme end around banning all code generated by AI.

Regardless, there is AI generated code in many repositories on Codeberg anyway.

I don't think they're banning all AI generated code, just projects that are primarily AI-generated. They'll probably also object to PRs that are entirely AI generated. Or at least they will when they become a problem.

This is less about the code and more about load. It's community funded so allowing agents to willy nilly push and pull will be very expensive.

I've seen so much commentary on the apparent strictness & extreme nature of Codeberg's approach & no actual examples of it.

They have a strict policy (which many have rightly pointed out is impossible to fully enforce), & their "enforcement" has mostly relied on good faith contributions to date. They're also accounting for the fact the ToS change came without advance notice for many of their users who were already making active use of agents, hence there remains many AI repos (I have yet to hear of any removals).

To me that seems like the best approach one can hope for - a lax policy is a slippery slope (presuming dissuading AI contrib is your goal), & wouldn't satisfy their legal concerns (hosting code of questionable copyright status), & strict enforcement isn't viable in any case (especially at their scale), so this seems to me to be the best compromise.

It may be more a measure against explosive growth than being anti-AI in principle.

AI generated code is allowed on Codeberg, but not if it's mostly ai generated

People who act out of ideology very very rarely change their opinions.

Did you read the actual policy? It isn't extreme in the slightest.