Only for some local operations- git protocol still uses SHA-1 for compatibility with old clients, and existing SHA-1 objects in old repositories aren't converted.
Git history can be rewritten or deleted e.g. by the git rebase command. The mirror's checksum DB is independent and prevents your build from breaking or being altered if a dependency is manipulated or deleted.
Maybe I'm missing something, but this whole operation feels like a huge infrastructure paid by Google for something that is not needed.