It depends on much money a user costs. For example, if give them $X amount of AI credits for free on signup, for every free user you lose money until they pay for a plan. But if you app has minimal cost per user, then it doesn't hurt much.
That's why people say to not have free plans, because free users consume resources and are less likely to become paid users.
That's why people say to not have free plans, because free users consume resources and are less likely to become paid users.