They did not lie or cheat. They technically acted within their given rules while ignoring the intent of those rules. Anyone who served in the military or attended a military school is very familiar with this behavior pattern.
“A plausible hypothesis for the emergence of those concerning behaviours is a conflict between goals.”
A conflict of goals was, of course, the reason why HAL9000 killed the crew of the Discovery in 2001: A Space Odyssey.
For those who haven’t watched, his breakdown of types of “hacking” is really good.