Outside of military / national security or if your agreement with your employer stipulates that you would give up your life before corporate secrets (and you are compensated accordingly) it's not reasonable to characterize cooperating at gunpoint as "cowardly"
What you don't want is them holding back how much they co-operate with the red team in the drill because they think that's how they would act, or they'd like others to think that's how they would act. Even if it is how they would act, you'd presumably like to know that your security measures would still work even if someone else was in their positions. But also, it's pretty obvious that no-one (or very very few people) know how they'd really act in that sort of situation.
I thought (edit: And still think, but acknowledge that it is not yet a well thought out plan) putting that word in was a nice short form way of achieving that goal, though in a real drill you'd want to communicate a whole lot more about that than the 3 words I used. And probably also communicate that were this to happen in a non-drill form, that you don't expect them to resist.
Incidentally, it's hard for me to imagine that there are many organizations outside of the military / national security that include armed invasion of their offices in their threat model, though I suppose some multinational corporations might.
I’ve worked in the highest levels of NatSec and have never even heard of this.
Either the story is exaggerated, or it’s in a country where shenanigans like this are allowed.
As for applicability, every now and then you hear a disturbing story of some office being raided by the police / anti-corruption force - this is not unrealistic if you're e.g. a news agency in a country whose government doesn't always respect the freedom of press.
Nah, too much could go wrong, security guard shoots them, somebody gets brave and jumps one of the “terrorists”, etc…
Hail corporate.
The adversary for the red team is the rest of the company that isn't being occupied, not the office that they did "occupy".