ACE inhibitors reduce formation of angiotensin II. Angiotensin II normally constricts the efferent arteriole, helping maintain glomerular capillary pressure and GFR when renal perfusion is low.
In renal artery stenosis, blood flow into the kidney is already reduced. The kidney becomes dependent on angiotensin II-mediated efferent arteriolar constriction to maintain filtration.
Textbook support: Tintinalli lists bilateral renal artery stenosis as an ACE inhibitor contraindication, and nephrology references explain that the risk is loss of pressure-dependent GFR. The
NCBI review of renal artery stenosis likewise describes rapid GFR deterioration and AKI risk in bilateral disease or a solitary kidney.