There is a segment of Framework's customer base which is ride-or-die for Linux, but it's not their entire customer base: they still exist in a market where they need to compete on features and cost. Before the Neo, that wasn't too bad because they were more-or-less at parity with Apple on cost, close enough on polish, and better on repairability. But the Neo is just so cheap, and with Apple's level of polish it's really tough to compete with.
The Neo costs the same as an on-sale Macbook Air, but doesn't support Asahi Linux. If any Framework customers were tempted by Apple hardware, they would have bought the Air a year ago and probably look at the Neo like it's a Fischer-Price laptop. Cost and polish aren't going to push sales for this market segment.