So, I do not have any close contact with AFA and I may be mistaken, but I was also taking a look at their website after they came up in one of last week's comments as an example of an organization focused more on doing its own thing than on decrying others.
From what I've seen then and now, AFA is a "Folkish" group. Folks like the SPLC will tell you that "folkish" is just code for "racist," but folks who use the label mostly have a more nuanced way of describing it, but it's one of the lightning rod issues among Germanic polytheists. My understanding is that those of a folkish persuasion believe that 1) most religions do/should have some link with the ethnicity that historically practiced it, 2) that worship of the Germanic Gods is historically linked with people of Northern European ethnicity, and 3) it's right and proper for at least some modern groups to insist that if you want to be a part of this historically-ethnically-linked religion, you should be a part of that ethnicity.
Now, notice I used "ethnicity" here, in part to skate around the core issue that causes most of the fighting: by "ethnicity," do we really just mean race? From what I've gathered, different folkish groups come down on this differently. Some seem to really mean "it's for white folks," others want you to have some amount of ancestry from Germanic-language speaking countries, and some seem to embrace a more cultural definition of "ethnicity" - if you speak a Germanic language (like English) and were raised in culture predominantly shaped by a Germanic culture (like America coming from England), then sure, you're part of the Folk.
What seems to cause most of the fighting is a combination of two factors: 1) the fact that any kind of White/Germanic ethnicity exclusivity is viewed as morally repugnant by many folks these days, no matter the fine points, and 2) the belief that such beliefs are attempts to put out up respectable front for secret full-on, Hitler-loving, goose-stepping, Sieg Heiling Nazism. This is not helped by the fact that some actual, self-describing Nazis have adopted some Germanic polytheistic beliefs, practices, and symbolism, which leads some folks to treat all Germanic polytheistic beliefs, practices, and symbolism as potential dog whistles for Nazism, and doubly so if folks start talking about what blood you have or what soil your ancestors came from.
Now, for the AFA specifically, I have seen some video clips of its founder, Steve McNallen, saying some stuff that sounds rather a lot like actual white supremacy (not the current hot definition, but what folks would have meant by those words a few decades ago). I do not know the degree to which he's still involved, whether he still holds those beliefs, or if they have anything to do with what the AFA teaches or does now, but it was enough for me personally to think "maybe this isn't all PC nonsense." I just haven't looked into it much since then.
Sorry for not having anything more definitive, but I hope this helps!
Re: Asatru Folk Assembly
From what I've seen then and now, AFA is a "Folkish" group. Folks like the SPLC will tell you that "folkish" is just code for "racist," but folks who use the label mostly have a more nuanced way of describing it, but it's one of the lightning rod issues among Germanic polytheists. My understanding is that those of a folkish persuasion believe that 1) most religions do/should have some link with the ethnicity that historically practiced it, 2) that worship of the Germanic Gods is historically linked with people of Northern European ethnicity, and 3) it's right and proper for at least some modern groups to insist that if you want to be a part of this historically-ethnically-linked religion, you should be a part of that ethnicity.
Now, notice I used "ethnicity" here, in part to skate around the core issue that causes most of the fighting: by "ethnicity," do we really just mean race? From what I've gathered, different folkish groups come down on this differently. Some seem to really mean "it's for white folks," others want you to have some amount of ancestry from Germanic-language speaking countries, and some seem to embrace a more cultural definition of "ethnicity" - if you speak a Germanic language (like English) and were raised in culture predominantly shaped by a Germanic culture (like America coming from England), then sure, you're part of the Folk.
What seems to cause most of the fighting is a combination of two factors: 1) the fact that any kind of White/Germanic ethnicity exclusivity is viewed as morally repugnant by many folks these days, no matter the fine points, and 2) the belief that such beliefs are attempts to put out up respectable front for secret full-on, Hitler-loving, goose-stepping, Sieg Heiling Nazism. This is not helped by the fact that some actual, self-describing Nazis have adopted some Germanic polytheistic beliefs, practices, and symbolism, which leads some folks to treat all Germanic polytheistic beliefs, practices, and symbolism as potential dog whistles for Nazism, and doubly so if folks start talking about what blood you have or what soil your ancestors came from.
Now, for the AFA specifically, I have seen some video clips of its founder, Steve McNallen, saying some stuff that sounds rather a lot like actual white supremacy (not the current hot definition, but what folks would have meant by those words a few decades ago). I do not know the degree to which he's still involved, whether he still holds those beliefs, or if they have anything to do with what the AFA teaches or does now, but it was enough for me personally to think "maybe this isn't all PC nonsense." I just haven't looked into it much since then.
Sorry for not having anything more definitive, but I hope this helps!