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The contractor clause is because of the military.

But it sure comes in handy for other stuff.

If the contractor clause is not applicable to this work even releasing it under the GPL is questionable, because that's most decidedly not the same as releasing it to the public domain.

Still, it’s the sort of unforseen problem you want to have.

I'm not sure they have the choice about whether or not to GPL it. They are building on GPL'd code, which means their code must be GPL'd. Perhaps there's a formal way to say, "we won't go after you if you use our code against the terms of the GPL, but we can't control what Drupal does".

or they can't use GPL software because of the license....

They really need to obey the law and should have an actual statement about how this works.

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