I don't see anything in NPT that forbids the US and UK from supplying nuclear propulsion to Australia. They are not supplying nuclear warheads.
The reason the French are pissed are strictly commercial. But that is on Naval Group. As soon as the deal was struck between Australia and Naval Group, Naval Group were changing the terms, and were years behind on some of the earliest deliveries. Had the project been going well, Australia would not have spent political capital seeking this new deal.
The French are not only 'pissed off' for commercial reasons. The deal was part of a long term strategy of France in the region, with India and Australia being the two main partners, so this has serious consequences for them beyond a simple arms sale.
Now, on the other hand, two good questions are whether the Australian ever discussed the possibility of France supplying nuclear-powered submarines instead of conventional ones, and whether France would have accepted. I don't know the answer to either though I'm doubtful about the latter and that may be an objective and very good reason for Australia to switch.
And yet it's a tacit agreement among nuclear nations to not sell military nuclear equipment to non-nuclear nations (ie who don't have at least a civilian program).
Which is why North Korea for ex has never been able to buy nuclear equipment from China or Russia. So far, because now that the US has decided breaking the rule for a short term financial gain was worth it, other's will decide that they might as well help their own allies too with a few reactors.
There is not nor has there ever been any prohibition on providing nuclear technology and equipment to non-nuclear weapons states. In this particular case, France offered to sell Australia nuclear submarines back in 2016 and Australia decided against it, but one of their reasons for going with the French proposal was that the submarines could be converted to nuclear in the future.
In 2000, the Swiss company ABB signed a contract to deliver not one, but two nuclear reactors to North Korea.
Here's the bit that should drain anyone of all faith in politicians: Donald Rumsfeld was an ABB board member at the time.
[1] https://www.swissinfo.ch/eng/rumsfeld-was-on-abb-board-durin...
https://www.ansto.gov.au/research/facilities/opal-multi-purp...
Follow the money. Christopher Pyne brokered this $50Bn deal to get re-elected (some boatbuilding would happen in SA) which blew out to $90Bn and rising.
Pyne immediately retired (got his pollie-perks-for-life golden ticket stamped) and then immediately became "employed" as a consult with the people profiting massively from this twisted deal against the public interest.
Pyne followed the same slimy playbook as Andrew Robb (4) who sneakily slipped the 99-year Darwin Port dodgy deal across the line, and then he got a free $880k "job" with them the day he left parliament shortly thereafter.
Borderline treasonous behavior is rife with our political elite (both sides stink badly)
https://www.macrobusiness.com.au/2016/04/would-you-employ-ch...
https://www.macrobusiness.com.au/2019/07/pyne-poisons-ey/
https://www.macrobusiness.com.au/2020/01/audit-office-torped...
(4) https://www.macrobusiness.com.au/2018/06/chinese-sell-andrew...
No, they're not. The sub deal with Australia was just part of a broader Pacific strategy to which Australia was central. Now that Australia sent the signal that it was to be a plugin in the US foreign policy rather than a country of its own, the entire strategy is dead and needs to be reworked. It's a major setback. It coming from the Nth sabotage of the French defense industry by the US is just the cherry on the top.
[1]: https://upload.wikimedia.org/wikipedia/commons/a/a2/Map_of_t...
https://en.wikipedia.org/wiki/Brazilian_submarine_%C3%81lvar...
Did that get an exception? Seems strange France could get that for Brazil but not Australia.
[1] https://en.wikipedia.org/wiki/Nuclear_power_by_country#Overv...
So on that note, we have nuclear technology already. Your point on proliferation does not hold.
What there has been is the NPT's Article I prohibition on the provision of nuclear weapons or nuclear explosive devices to non-weapons-states (which are all but the 5 weapons states, USA, Russia, France, UK, China). It also prohibits assistance / inducement in developing weapons.
The "(or nuclear powered)" bit has never been a thing.
There is also the Nuclear Suppliers Group, which is a group of nuclear-technology-exporting countries that agree not to export to NPT non-weapons-states a much longer list of dual-use nuclear technologies, unless IAEA comprehensive safeguards agreements are in place. Australia is a member of the NSG, and has safeguards agreements with the IAEA.
The IAEA has been informed by all three states of this new proposal.: https://www.iaea.org/newscenter/pressreleases/iaea-on-trilat...
“Fast attack” subs hunt other subs, convoys, ships, etc. they are not strategic weapons.
https://www.world-nuclear.org/information-library/nuclear-fu...
As a nation the pivot to having nuclear weapons is quite straight forward. The technology and resources are available, and the infrastructure has been researched and applied at smaller scales in the past. We're also quite invested in hypersonic projectiles, so it wouldn't take a whole lot to arm a formidable arsenal, the highest cost being political capital.
[1]: https://thebulletin.org/2021/09/the-new-australia-uk-and-us-...
What the US and the UK did here is a breach of a worldwide agreement by nuclear powers to not supply non nuclear ones in order to restrict nuclear proliferation. Which is one reason the French are pissed - the US took away their contract by breaking a rules the French had stuck to.