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They'll want to form a coalition with the Nazis in 2029, just like last time, so obviously they don't want to ban them. Fucking "conservatives".
Genuine question: what/who do you base that assumption on?
So far, those most thinking about such a coalition seem to be those that aren't in the Union.
Merz hat gone from "firewall" over "ah, let's not fuss over state level cooperation" to literally inviting them to help him win a vote against the old federal government in a time span of less than 4 years. CDU/CSU representatives didn't abandon him over this, so I have to assume they are ok with it.
Spahn (new conservative faction leader, one of the most powerful positions in the next parliament) publicly calls to treat them like any other opposition party (that would logically include being open to a coalition).
Many other prominent conservative figures are actively working to adopt and normalize AfD positions in their policies, which is how the public gets prepared to be more open to the idea.
You have to actively want to not see it to be able to ignore the writing on the wall. They absolutely will do it as soon as it appears beneficial to them.
Merz is power-hungry and wanted to become chancellor pretty bad. Also, I'd agree that there is too much spinelessness in the party when push comes to shove (but also in the SPD, as can be seen in the 'cautious' comments concerning a ban of the AfD).
Yet, I don't really see them wanting to form a coalition with the Nazis in 2029 and concerning Merz, it is one of the very few things I actually believe him that he personally won't form a coalition with the AfD. They also don't want to burn themselves in a failed attempt to ban the party, or, in the Unions case, don't want backlash from the voters they want to attract back from the AfD. But I honestly wouldn't say they are keen to cooperate with the AfD, especially as long as it is possible to achieve their goals with a partner as malleable as the SPD. The reasons of them not wanting to ban the party are primarily fears of accountability and backlash, not strategic ones.
That's the key condition. As soon as other partners aren't willing to give them what they want, they will not hesitate. They have literally just shown us that they won't. Those votes were a power play by Merz to signal to the SPD they shouldn't be too confident in their position as the only possible partner. That only makes sense if he's willing to go through with it.
Of course they are telling the public now that they won't do it. About three years ago Merz told us anybody who cooperated with the Nazis in the slightest would be excluded from the party the next day. I may have missed all the exclusions, but actually I think you cannot trust one word this man says.
Also it's not even a sure thing that Merz will be in charge for the next election. The "first row" in the CDU took a big step back when it came to posts in the new government, possibly because they are gambling it won't make it for the full 4 years. And if it doesn't, it'll be Spahn or one of the other extremists next.
Last time the Nazis came into power the conservatives acted in the same way and they will do it again. It's a property of conservatism, not of the individual actors. You can see that in other nations, the USA are only the most recent example. Conservatives will help anybody to power as long as it means they can avoid taxing the rich.
But wouldn't that make the AfD their second best option at best? The way you state it makes it seem as though they are actually poised to form a coalition with them, i.e. actually go for them as their prime partner in a coalition. I'd say they'd always try to form a coalition first with red, green and/or yellow.
Also, as stated, I don't see any hard-bitten aspirations to form a coalition with them later as the key driver in their reluctance to ban the AfD, but rather the fear of failure. Wouldn't you agree?