I thought of using GPL, but it would mean someone else would be obliged to open their source code if they base their software on my engine. Though open-source is good and must exist (speaking of Ren'Py, which is not GPL, but still an open-source engine considered a golden standard of VN development), I'd like to give others the right to make their derivative works either open or closed, by their choice.
As for AGPL, I know nothing, unfortunately.