If the API is solely for your own consumption, this can be simpler, and of course third party clients are harder to monetize as the kinds of ads you can serve are going to be restricted to what you can force a third party client to receive and render.
If the number of users on third party clients is really low, all of the above can carry more weight in internal business case style discussions too.
My fellow mods and all prominent users I interacted with (the vast majority of them not from tech as it was not a tech focused community) were all well aware of 3rd party clients, and many used them.
This is very anecdotal, but amongst Reddit more "intense" user base, I would be surprised if 3rd party client usage was low.
I wonder how many power users, heavy users, or content generating users use unofficial apps. The passive lurkers are great for ad revenue, but the people who comment make the site worth browsing.
They would instead rather charge far more money for data access for things like AI training etc, Twitter have also made similar changes to their own API to prioritize high bills for AI training use cases, not third party clients. That's at least how I see this change. The high pricing for these customers also removes the need to worry about the ad tech situation as is the case in the third party clients - you can just offer them an ad free feed at these prices for the training requirements.
I suspect the internal at Reddit desire to have less third party clients may well predate the AI discussion too, given almost all companies in this position eventually want to wind down those clients as history has shown again and again, for all of the reasons discussed in this thread.