I work in an area adjacent to autonomous vehicles, and the primary reason has to do with data availability and stability of terrain. In the woods you’re naturally going to have worse coverage of typical behaviors just because the set of observations is much wider (“anomalies” are more common). The terrain being less maintained also makes planning and perception much more critical. So in some sense, cities are ideal.

Some companies are specifically targeting offs road AVs, but as you can guess the primary use cases are going to be military.