This should not be an issue.
The condition they provided was effectively "if you want to use GPLv3 you can use GPLv3". That's perfectly acceptable for GPL. What they are doing on top of this is saying "if you can't/don't want to use GPLv3 but meet some other conditions, we will dual license it under one of these other licenses for you".
Let's say I have an open source project under the GPLv3 which only contains a foo.txt.
"If you are creating an open source application under a license compatible with the GNU GPL license v3, you may use BrowserBox Pro under the terms of the GPLv3."
So I can merge the BrowserBox Pro under GPLv3 to become part of my project.
Now I remove the foo.txt and my project will be a BrowserBox Pro clone under GPLv3 without the commercial restriction.
Nonetheless, I agree with your broad point: that if somebody can use it under the GPL, they can redistribute it and then all those downstream users can use it under the GPL.
But I disagree there is anything to fix. It's copyleft FOSS but businesses are encouraged to buy a license. Everybody wins.
He needs to fix it - if he wants his license to enforce being paid for commercial use.
It may be too late!
Other products in this: Qt - https://doc.qt.io/qt-6/licensing.html, Isotope - https://github.com/metafizzy/isotope#license
What do you suggest?
In terms of there being an actual better solution, though? I don't know. We're doing what other products are doing.
We remain open to that possibility there could be a better solution tho. But we haven't yet seen anything to convince us we're not on the money as we are.
Then it wouldn't be open source, so I am not rooting for that.
However, for better or worse, large successful businesses can be built on scaring companies to pay for a commercial proprietary license and/or support, for copyleft open source.
But anyway it sounds like he needs to decide what he wants, and that's probably a non-open source license, if he doesn't want commercial use.
Which shows the problem with this specific license in a single sentence.