I think that's exactly how that license works. Basically, the license is the only thing that grants you rights to redistribute the licensed work. Copyright law otherwise forbids it. And the license itself only grants you the right to redistribute the work as long as you comply with its terms. If you violate them, the license no longer applies, and you no longer have any legal right to distribute the work or any derived works.

I have zero knowledge about the squabble between MinIO and Weka. I don't know, and don't care, if either of them is in the right. But if Weka isn't complying with the terms of the AGPL, then MinIO has the legal right to tell them they can no longer distribute MinIO's licensed work at all, because nothing else grants them that privilege.

If that weren't true, there'd be no teeth to the A?GPL whatsoever.