1. Anthropic should be free to sell its services under whatever legal terms and conditions it wants.
2. The Pentagon should be free to buy those services, negotiate for different terms, refuse to buy those services, and terminate contracts subject to any termination clauses.
You may or may not agree with what the Pentagon wants to do, but if things had stayed there, there would be no real issue.
The problem is that the Pentagon is trying to bury Anthropic as a company, calling it a danger to the United States because it exerted its non-controversial right in (1).
Any “explanation” that doesn’t address that is confused itself or trying to confuse the issue.
I leave it to you as to which category the linked source falls under.