I guess my opinion would really depend on the exact wording and details of the arrangement. Lots of people jumping in with strong stances based on pretty limited details.
The whole conflict is specifically about uses that do not involve a human decision. The DoD agreed to a contract that said it wouldn't use Anthropic for that, and then tried to change the terms.
Incidentally, the DoD used Claude in its decision that resulted in killing 120 children at an elementary school for girls. The Pentagon concluded that there was human review (which would mean that it fell within the contract's terms) but that the review was hollowed out (which could mean that it was a violation of the contract).