I think its kind of a conspiracy/"Open Secret" that Palantir was funded by the government to side skirt any "Government cannot...." rules. It's not the government breaking privacy regulations, its a private company doing it....just under contract of the government.
Thats the rhetoric on good ole r/WallSteetBets, atleast. Theil and Karp definitely play into this angle as well, but that doesn't really prove anything other than they're hungry for investors