That's exactly what I told the electrician but he seemed to think it had to do with the branch circuits!.
He is wrong.
Here's what he might be thinking of though. If there were a lot of motor loads, the potential fault current of the
system might be a tad higher than what is available from the
utility because of the "motor contribution" from any motor that is spinning at the moment of the fault. Potentially, any rotating AC motor can become a generator when a fault occurs, feeding current into the fault. So when determining the ratings of equipment, it's best to know of any potential contributions other than the utility power.
But in the absence of that information, the AFC is the Utility Fault Current at their transformer terminals, minus whatever impedance there is in the cables and distance between there and your Switchboard. basically, the inspector just wants to see that whomever selected the Switchboard and devices in it understand that it has to be rated for AT LEAST the Available Fault Current.