So if the government pays for you to build out your infrastructure you then own and use to secure other contracts ... isn't that a subsidy? Do you not think that will make SpaceX more competitive in the market? ULA got similar treatment, so I'm not saying it's all SpaceX but they are living off of government dole (in a way that is more than just providing a competitive service to the government)
[1]https://spacenews.com/spacex-explains-why-the-u-s-space-forc...
The other contracts are key here. It's very unlikely that the vertical integration facility will be used for anything else than US government missions, as vertical integration is basically only useful for spy satellites. Without more details it's hard to judge whether the same is true for the West Coast upgrades and extended fairing, but it wouldn't surprise me if we see those only being used for government contracts.