"The law" is the contract. The Pentagon agreed to terms of service. The law is not on the Pentagon's side. The contract did not change; what changed is the Pentagon breaking the contract.
Perhaps you think the law shouldn't allow such a contract; that's a valid position. But that's not what the law currently says.
I'm saying they shouldn't write in their contract that they have some veto power of how their software is used if it's within the law of the land (ie laws written by congress)
Agree. Anthropic shouldn't require that in their contract (it is stupid). I'm glad the government resisted as it was an insane overreach. But since Anthropic insisted there should be no contract.
Perhaps you think the law shouldn't allow such a contract; that's a valid position. But that's not what the law currently says.