Genuinely shocking. "We were totally fine with this being used to target people for surveillance and killing, but now you've crossed our arbitrary ethical fig-leaf so here's a big stink." I won't be surprised if they reach an eventual compromise that represents what the Pentagon wanted all along, while Anthropic can continue their chicken little act... all while building the very thing they claim to fear.
Who could have predicted that Satan would turn around and screw them, outside of everyone ever. Maybe they should have asked a person instead of Claude.