The opposite: DoD did this because Anthropic was performing to the contract (which codified the restrictions in question), and the government was violating the contract, and sought to violate it more.

> Given that the Anthropic announcement of their policy update to their AI being used in they way it was already being used happened less than two weeks ago

The policy excluding use of Anthropic's Claude service for domestic mass surveillance of civilians and fully-autonomous killbots is at least a year old, and codified in the contract terms the government signed back then.

After the signing, the government decided they wanted domestic mass surveillance of civilians and fully-autonomous killbots, and thus regretted their agreement to those contract terms, and thus is now unilaterally cancelling their agreement. Simple as that.