Elon has had many contracts with DoD, and the existence of his Starshield contracts are public knowledge. Starshield is the SpaceX portion of a larger program that gives the government not only their own Starlink satellite constellation (owned and controlled by the US, not Musk), but the ability to add satellites of various configurations and capabilities from SpaceX or any other manufacturer. In other words, SpaceX isn't the exclusive contractor, and you can rest assured that this system has more capabilities than the commercial Starlink, like reconnaissance (as stated in the Reuters piece).
So yes, Musk and SpaceX are a component of the American MIC. That doesn't make him a bad guy any more than being rich does, unless you subscribe to the "America is evil" viewpoint. I don't. The capabilities associated with Starshield will help keep us ahead of our adversaries for a while, but China is working hard to catch us. Hopefully Elon won't help them...
Elon doesn’t have to help them.
congress and the executive branch are doing everything they can to boost china’s miltech and have been since 1993.