Chris DiBona is paid to care about exactly this issue. Compliance is his job description and AGPL policy companywide is comfortably in that portfolio. That you disagree with him does not indict Google nor create an alternative universe where Googlers are setting out unprompted to screw the free software world that gave them 50% of their infrastructure for no reason other than fear.
You underestimate the rigor required in compliance. We are talking about FAANG compliance, too, which holds nary a candle toward compliance in other verticals. This thread should illustrate why compliance decisions are largely made independently of engineering.