Tons still in armouries, still used, but fallen out of favour I'd say for sure. I had a search out of my own curiosity, and most pics of A3s don't have them, especially with infantry blokes - who are amongst the small portion of the forces using the L85 but also given some element of leeway in configuring it. In the pics where the grip-pods are mounted, I personally reckon it's mostly because the person was told they had to have it - which I'd say is most UK service people when using TES A2s.
Foregrips in general don't always get along with AKs, which is why there's a few funky ones from ruskie brands that stick out at weird angles, so that's a specific issue in the OP's case and it's exacerbated because foregrips with integrated bi-pods are always the longest/tallest of all types of foregrip.
While the real grip-pods (the GPS design that the US and UK have issued) are 'ok', they're still not the most durable thing which is unavoidable due to the design, so then when you make a replica with typical airsoft materials you usually end up with something very flimsy. I'd wager most people who've ever attached a bi-pod of any kind for a functional purpose vs emulating something real, have ended up taking it off again not long later, since they're usually in the worst place to add weight (near the muzzle) and are no assistance in terms of accuracy with guns that shoot minute-of-barn at their maximum effective range. They have niche uses of course, good if you're going to stay in a spot you can rest the gun for 20+ minutes and just cover one narrow alley, but not a ton else.