That is a deeply deceptive description of what happened. Anthropic was clear from the beginning of the contract the limitations of Claude; the military reneged; and beyond cancelling the contract with Anthropic (fair enough), they are retaliating in an attempt to destroy its businesses, by threatening any other company that does business with Anthropic.
No, that's not what they said.
"Two such use cases have never been included in our contracts with the Department of War, and we believe they should not be included now".