An Azure service that provides serverless Kubernetes, an integrated continuous integration and continuous delivery experience, and enterprise-grade security and governance.
Hello Kamil Grebenicek, if I am understanding your question correctly you are asking if AGC can talk to backend gRPC services over plain HTTP/2 (h2c), and does it support the Kubernetes appProtocol: kubernetes.io/h2c setting?
if so then as of now, Azure Application Gateway for Containers (AGC) does not officially document support for HTTP/2 Prior Knowledge mode (h2c) for upstream (backend) communication.
While AGC does support gRPC, which operates over HTTP/2, the Microsoft documentation only references gRPC support through the Gateway API and GRPCRoute resources-
"gRPC is only supported using Gateway API for Application Gateway for Containers."
checkout this document- Microsoft Docs: gRPC on AGC

However, the AGC documentation does not currently mention support for HTTP/2 Prior Knowledge mode (h2c) or for Kubernetes appProtocol (let's say appProtocol: kubernetes.io/h2c)
Even though the Kubernetes Gateway API documentation defines the appProtocol (including kubernetes.io/h2c) for indicating HTTP/2, AGC's implementation has not yet advertised conformance or support for this capability.
If your scenario requires cleartext HTTP/2 (h2c) to backend ASP.NET Core (Kestrel) services, you may need to place an intermediary (like an Envoy or NGINX proxy) that can handle TLS from AGC and speak h2c to Kestrel.