[TheRealPomax]

Some firms don't understand how to do data management, and if we draw the venn diagram of those and the ones that ban sqlite, it'd be pretty close to a circle.

Yes, databases could have any extension. No sane dev team would accept code that doesn't use an object extension for a sqlite database.

Yes, databases can contain PII but no sane product manager would go "yes, that's a good use of sqlite".

Yes, you can trivially copy database files, but no sane product needs to in the same way that no sane product should require folks to just clone the db just to do some work.

Pretty much every reason a company has for banning sqlite is a red flag for working there.