It's not clear to me whether Anthropic's limitations are technical or merely contractual. Is Anthropic actually putting the limitations in their prompts, so that the model would refuse to answer a question on how to do certain things?

If so, that's a major problem. If the military is using it in some mission critical way, they can't be fighting the model to get something done. No such limitations would ever be acceptable.

If the limitations are contractual, then there is some room for negotiation.