One of its founders donated to a party that opposes immigration into Sweden. Some people seem to think that this is a conflict of interest because they assume that the surveillance necessary to accomplish what they think that political party wants to do (they claim they want to do mass forced deportations) is at odds with Mullvad's mission.
I personally don't think a single founder making that contribution is a strong enough tie to Mullvad to expect it to influence their behavior. I also don't think there's any reason to think that that party's goal will necessarily entail the curbing of digital security products like VPNs.
If anything, I think that Mullvad taking a "it's his business; it's not our role to tell individuals what they can think or do" stance is exactly what I would like a VPN to do. Others disagree.
tl;dr: It still has a great reputation outside of the Blueksy crowd.