>As I understand it cane down to one point: Anthropic wanted the ability to review actions that would have an effect on human life.

This is not at all what happened. The existing contract that Anthropic had with the government had two red lines: No autonomous weapons (i.e., do not build Skynet with Claude), and no mass domestic surveillance.

Anthropic did not, and does not want, any case-by-case veto power over the US Military's use of their AI models. The red lines were negotiated ahead of time.