The FSF has a definition of the term "free software".
Software under AGPL is not not free software according to that definition. It violates freedom 0.
Yet the FSF approved AGPL! This was an ethical disaster.
A key difference between free software licenses and commercial software EULAs was that the latter was a two way bargain. The copyright owner, who the law gives the exclusive right to make copies (including, for computer software, making temporary copies in RAM to use the software) grants you via the EULA permission to do that, in exchange for you agreeing not to do some things that otherwise would be allowed under copyright law. For example, you might have to agree to not reverse engineer the software, or to sell it when you are done with it.
The free software licenses, on the other hand, only grant you permissions. They do not require you to give up anything.
Until AGPL. AGPL goes beyond just granting you permission to do things that copyright law says require permission. It places restrictions on what you do with the software on your own machine. It is a EULA.