Is it a hazard to use spray foam around baseboard heater pipe

I'm in a temp range about 5C more in each direction. Attached garages tend to be about half as cold as outside so a thermal break is less important here. It wouldn't be a huge loss if you just screwed the gypsum board directly to the underside of the floor joists. However, it's easy to get a thermal break without much more effort, and it's almost as easy as applying directly to floor joists.

After applying the main insulation, sheath the bottom of the joists with 1/2" polyiso (polyisocyanurate) insulation board -- your thermal break. Then using longer screws, apply the gypsum directly to the joists through the polyiso.

Highest possible ceiling, thermal break if you want one, level application, no faffing about with hangers. Wins all around.

Short answer : money.

Longer answer:

Inquiring at Google Contracting Services and doing some back of the envelope math, I came up with the following price ranges for the mentioned insulation types.

Spray foam is about $0.15-0.21/square foot/R

Fibreglass batts are about $0.03-0.07/square foot/R

Rigid foam panels are about $0.10-0.15/square foot/R

As we can see, in terms of insulation value for your money, the batts take a bat to all challengers.

Now someone will look at an insulation value chart and says "But foam has a higher R-value per inch, so it's better insulation since you have non-infinite space to put it in".

Comparing insulation value per thickness, they are correct as shown below:

Spray foam - ~R-6.3-7/inch

Fibreglass batts - ~R-3.1-3.3/inch

Rigid foam - ~R-5-6/inch

Both of the more expensive options achieve more with less thickness, so those options would allow more insulation value to be packed into the same volume.

But, you're going to bang your head into a point of diminishing returns where you'd achieve more energy savings putting the money towards improving things somewhere else, and you'll hit that point sooner than you think, given the way R-values work*, so that increased insulation density doesn't really get you much gain.

Additionally, installing batts (and rigid foam, for that matter) is a pretty simple DIY job and requires minimal PPE (gloves, goggles, dust mask). Spraying in foam indoors means you're going to need a full-body suit, gloves, goggles, respirator, etc. which makes DIYing it outside the skill/comfort level of many, meaning needing to hire a professional to do it for you (and the hassle/expense/loss-of-pride that entails), leading people to just go with the simpler batts.

*expanding, R-value basically means that 1/Rth of the heat (or cold, as the case may be) will escape compared to no insulation. R-6 means 16.6% of the heat is getting out. adding R-24 of insulation and going to R-30 results in only 3.3% getting out, a saving of 13.3%. But add another 24 to get to R-54 only gets us down to 1.85%, a saving of 1.45% for the same investment, and as I said above, you can likely find somewhere else to improve things that will get you more than that small savings for the same money, or at an endpoint, that money will buy you more gas/electricity than the extra insulation will save you over any realistic timeframe.