Adding different ammunition types to Bazookas will improve their effectiveness against infantry and, in turn, encourage people to use actual AT squads, not just add them to their assaulters.
(Above are WP rockets and HE rockets for the American M1 Bazooka)
Frags are less “lethal” in the sense of blowing people up, than people think - however just like RPGs the real power comes from disabling the enemy.
Having a massive shrapnel stuck in your leg won’t kill you right away, but combined with a massive blast, people will lose their ability to fight.
I think even if not lethal, there should be a rather wide big splash AEO damage for launchers, especially with just a little damage, but enough to hit and suppress groups of people.