There are many other things you learn and things you can go on to do as [engineering student] at [university]. Doing a [resume-boosting challenge] is one small part of your universe.
On the other hand, when you are entering a special program for weapons development and giving press releases about how long you've been studying about guns... your intentions and the expectations for you are very different.
The existence of these types of programs isn't troubling. It's the belligerent geopolitics of the state that are troubling.
In any country on earth, you be pretty much 'vetted for loyalty' before they let you close to their sensitive intelligence or tech related work.