I don't understand the line as well. So its no to domestic surveillance, but all other countries are a fair game? How is this an ethical stand? What sort of mental gymnastics allow Anthropic to classify this as an ethical stance?

To me all of this reads like "we don't trust our models enough yet to not cause domestic havoc, all other is fine, and we don't trust our models enough yet to not vibe-kill people". Key word being "yet".