To expand on this: I think it's reasonable to assume that the stack will reach orbit just fine and be a functional rocket.
The big risks are related to recovery. Starship will require in-orbit refueling to go to the moon, so (rapid) reusability is somewhat of a hard requirement.
Superheavy (the first stage) is huge and will land directly on the launch tower instead of using landing legs - to reduce turnaround times. This is innovative and completely unproven. And a RUD would at the very least put the launch tower out of commission for a while.
Starship (the second stage) will also have to survive the high velocity reentry in a good condition and nail the crazy landing maneuver. SpaceX heat shield tiles and the general aerodynamic and thermal properties of the rocket are an unknown for now.
Musk recently said that Starship will probably require "many test flight" to achieve successful reentry and landing.
On top there have been quite a few reliability issues with their new Raptor engine, which need to be ironed out.
I'm sure SpaceX will figure it out, but there are a lot of risks lurking in the development program.
All this makes the choice to go for SpaceX more impressive for the usually so cautious NASA.
But the payoff would be enormous. If the re-usability works out, Starship can completely change the game for the launch market and lift capability.