If SpaceX wants Starshield to operate in Taiwan, it would. If DoD wants it to, it means nothing unless they convince SpaceX, which apparently has a conflict of interest through its CEO’s other businesses, or force it legally.
It sounds like SpaceX wanted to make Starshield & Starlink a bundle deal. To fulfill the DoD contract, they could only operate military Starshield and not consumer Srarlink. They even use different satellites as far as I know.