Granted, government policy affects peoples' wellbeing, which can definitely affect their political views, but making the jump to "everything is political" feels like a stretch?

Granted, maybe I was a bit too fast there. This should be better: "Everything has the potential to become political, as decided by the society."

Someone alone cannot decide what is or isn't politics. They need a couple of other people believing it too. But they can try to convince them. But software development most surely is, because it touches a lot of stuff, that many people think is political, even before getting into CoCs and used jargon.