First of all: this happened before the Pentagon dropped their contract.
I'm not sure if this change is entirely relevant, because the whole "AI safety" thing has been a sham from the beginning. It's always been unverifiable and the promises have always been undoable. LLM's just predict next word with a little extra randomness. And there's no way to guarantee through an LLM that they won't predict next word that ends up being bad. You can't promise this without removing the randomness and then testing the infinite input and output that could happen.
It's basically like when Google removed "don't be evil." It was a promise that was unfalsifiable and unquantifiable.