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Isn't most of it copying what other sites do like Facebook?
I think they are doing it so they can better monetize it, and they are under the delusion that they have as much leverage as Facebook does.
Facebook does it and gets away with it, because it has an actual practical use for some people that is hard to replace.
Reddit on the other hand is nothing more than a glorified forum. So for reddit it may be stupidity, because they don't understand the limits of what they can do without destroying the site.
I bet the login requirement is to prevent scraping, to force companies that want to use it for AI training to pay.
But I'm no expert, maybe that doesn't even work?
But for sure it's an attempt to increase the value of the data that is on reddit, and to improve monetization.
It seems to me that that has been the only goal for reddit for years.
But maybe I'm wrong, maybe reddit will actually manage to figure out ways to monetize the site without killing it, where for instance Twitter failed although they were getting closer near the end.