I think one issue here is this apparent assumption that this partnership will lead solely to training for combat and violence, which while I am certain that combat training will be a definite use, these same simulations are also used to train for responding to natural disasters and in training medical response teams for extreme emergencies.
This idea that “for the military” is “for combat” is a pessimistic viewpoint that isn’t inherently true. These simulations are just as flexible as the Unreal Engine itself.