There isn't even a law preventing direct military usage of that library as far as I understand, because they're not violating copyright law by just downloading

There isn't even a law preventing direct military usage of that library as far as I understand, because they're not violating copyright law by just downloading something, which by the way is hosted using federal funds. But the absurdity of high energy physics / national nuclear research labs saying you can't use the software for military applications, and then this mainly comes up in civilian applications with nervous lawyers? Yeah it's missing the point more than you seem to be implying.