So I assume it's because of their sponsorship of Omarchy and Hyprland projects?

Interesting, but there's no evidence they are nazi themselves, just that they intentionally disregard whether any of their partners are nazis, and only concern themselves with whether or not any partnership furthers their goal of promoting open source tech.

So their focus is just limited and immature.

They themselves can still do a lot of good, orgs don't need to be perfect, but I too would expect them to remove support for extremist led project when made aware, as to ensure they weren't inadvertently supporting extremist views and actions. But I also can't see punishing them for being politically or socially stupid while otherwise being very tech savvy.

Like we've never met a socially awkward tech savvy person before?

The world is mostly a bunch of grey areas: at this point I disapprove of a couple of their actions, but I won't boycott them outright for their error.

If they started flying nazi flags themselves, well, then, I suppose things would be a bit different.