This may be an uncomfortable fact but people have surprisingly short memories: the military funded the majority of the early advances in systems, networking, and cryptography (and especially as a large part of the latter subject area, invested heavily in fundamental, theoretical research). Not saying that I disagree with the employees' opinion, just that DoD/Pentagon involvement in artificial intelligence research sh…
You made a point of talking about cryptography. The US government also classified crypto as munitions in order to control its usage and export: https://en.wikipedia.org/wiki/Export_of_cryptography_from_th...
This had very negative effects on cryptography in general (see the FREAK exploit: https://en.wikipedia.org/wiki/FREAK )
Also, why wouldn't this be employed to better monitor Stingray (https://en.wikipedia.org/wiki/Stingray_phone_tracker) systems?
I don't think the government (and specifically, the military) should be viewed as a non-partisan actor when it comes to technology.