It not what the scientists are proposing that is loony but the way that article has reported it. It would not been the animals themselves that would be stored there but their DNA.
Since it has gone online-only the Indeoendent seems to have become a tabloid, with outrageous headlines designed to get clicks and boost what they can charge advertisers.
But don’t you ever check these stories or are you just indulging in confirmation bias?
Here’s a more sober report of what is proposed and why:
https://theguardian.com/environment/article/2024/jul/31/scientists-propose-lunar-biorepository-as-backup-for-life-on-earth