There should be exceptions on a case by case basis. This is about getting. That’s what Trump himself said. It appears that two Iraqis either assisted the US military over a long term, or their spouse did. Seem like decent vetting. They could face actual retribution for that in Iraq.
As I recall, the guy who shot up Fort Hood was in the military for several years, and at the time he started shooting. Vetting is vetting, and shortcuts are shortcuts.
Whomever held these two should have gone to a higher up for clarification. Trump would not have wanted these two held.