SV devs don't contribute significant volumes of code to military equipment. They're mostly being used to build the panopticon. The incumbent contractors have plenty of staff who will do the work others refuse.
You're making the classic fallacy based on your
anecdotal experience. Lockheed, Boeing, Raytheon, Palantir, Thales, SSL, Redhat (IBM) and more definitely make a good living off the MIC in the Bay Area. USARL, DARPA and the national labs also do a bit of work in the Valley. Heck, Stanford and SRI grew out of the MIC.