To tie this to the software development community, I used to work in electronics manufacturing for a company that provided services to defense contractors. The vast majority of my dev team (SWEs, PMs, QA, Ops) were offshore, split between Latin America & India mostly. The product owner & architect of one of our team's key software services (shop floor test integration/automation tools) was Brazilian. In one version of the code he'd set some debug flags so he could triage an intermittent error. Unbeknownst to everyone (I mean, we
should have known, but didn't think to check), the version was deployed to prod in a factory building DoD stuff.
We got called not long after by the site's compliance officer asking why classified data was being accessed by non-ITAR-compliant personnel. It was explainable and we got through it just by implementing and adhering to an additional deployment control, but I still remember him telling us that the products being built don't become classified until the serial number label is applied to the board. That label is what ultimately identifies the product and the program ... so if we had a way of testing things without labeling them (for example, by creating dummy labels that didn't mean anything but could still be UUIDs), it was no problem. So then we adapted our software to allow for these dummy serials for testing purposes ... and we also created a classified compliance trigger in our BI tools to prevent manufacturing history for any classified unit from being visible to an non-compliant personnel after the manufacturing step where the real SN label was applied.
Speaking of naval nuclear, I grew up in Lynchburg, VA, home of BWXT, and my dad is a [retired] naval officer & nuclear engineer who spent his career at B&W (commercial). I had several friends who went to work at BWXT and they took data controls extremely seriously. No computers (including cell phones) allowed through the gate. No paper allowed back out, and any new hire who didn't already have a security clearance had to work in a physically airgapped (trailers, enclosed in razor wire fencing) office on not much of anything until they got cleared. For some it took 6-9 months after they were hired.