> The government is the one that said it didn't want/couldn't use this

Technically, the Pentagon did. I don’t know if that’s legally binding on the NSA.

TFA says the NSA is part of the DOD.

It is, but NSA reports to the director of national intelligence, not the defense secretary, so it’s unclear (to me at least) that SecDef’s opinion of Anthropic counts for anything here

I guess DOD is large enough they have multiple parallel cabinet level positions

https://en.wikipedia.org/wiki/National_Security_Agency

It’s not as clear as that. The NSA director is also, traditionally, dual-hatted as the Commander of CYBERCOM and thus a flag officer reporting ultimately to the SecDef. The DNI is responsible for coordinating/funding national intelligence activities but ultimately a lot of day to day operational decision making tends to flow through the pentagon. They would definitely need to abide by DoD policy

> They would definitely need to abide by DoD policy

The policy in question is a statement by SecDef being reviewed by courts. I think it’s fair to ask whether DNI is actually constrained by that, or if it’s a judgement call.