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Genuine question, is this sort of like how Google is Mozilla's biggest supporter or how Microsoft supported Apple years ago?
That's my read on it. If the AP (and later Reuters and the other major news sources) are banned, it harms the legitimacy of Fox et. al.'s propaganda.
I also feel AP and Reuters are the ones doing actual work, and Fox just copies them.
How often do you see 'AP is reporting... ' and 'Photo by AP' ?
Yeah, that was the first thing that came to my mind. AP does legit work, they are well respected and well cited on both sides.
Fox: "We need to ensure AP doesn't get banned. If they do, we might have to hire a couple journalists so we have content"
They want to discourage the administration from banning news orgs because they that at some point they will fuck up and don't want to get banned too.