ARM aren’t trying to force Qualcomm to use ARMs cores. They’re trying to force them to update the licensing royalties to make up for the (as ARM sees it) licensing term violations of Nuvia who had a design license for specific use cases.
The part you reference (using ARM designs) is the fallback if Qualcomm lose their design license.
The destruction of the chips is standard practice to request in cases of license and IP infringement .
That is the entire crux of the issue. ARM gave Nuvia a specific license, and then Nuvia was acquired which transferred the IP to a license that ARM did not extend it to.
I'm not enough of a lawyer to figure out who is right.
And the fact that Qualcomm got just about everyone to endorse the acquisition ahead of announcing it but didn’t even tell Arm is a bit of a tell.