This is remarkable, and the implications of this should be understood. First of all, some counties in both Virginia and New Jersey haven't sent out absentee ballots yet in violation of their own laws. Whether due to maliciousness or simply being overburdened and understaffed is always up for debate. If Virginia prevails, there would be a legal argument for putting the ballots of active duty military at the back of the bus, as it were.
Second, this whole debate concerns only federal elections. States have to pass laws that allow for military voting in non-federal elections. I do not believe that either state has done that. Virginia's filing notes that many of these questions are irrelevant in many ways because of the Federal Write-in Absentee Ballot, but their flier on military voting notes "Virginia allows you use the FWAB as an absentee ballot for Federal Offices only". In other words, not state and local elections. In fact, state laws have to do more to let active duty military vote in state elections.
Third, if ballots were even to be sent out in a reasonable time, a question is them getting back in time. Rep. Kevin McCarthy, Rep. Dan Boren, Sen. John Cornyn, and Sen. Mark Begich have a proposal to have DoD pay for ballots to be returned by express mail, but Steny Hoyer and Nancy Pelosi are blocking consideration in the House, even though it passed the Senate last year.