And what would be the benefit ? Which roles in SpaceX does not require access to ITAR data ? Would the world really be that much better if SpaceX could hire refugee non-ITAR HR people or janitors ? It is simply not worth it.
What is SpaceX is worried about a lack of current internal control to segment ITAR from non-ITAR? That seems like a plausible concern on the part of SpaceX.
I think you're avoiding the question posed by GP, to be honest.
Labor laws are arbitrary legal definitions. This lawsuit is the government enforcing labor laws. Notice they are NOT suing to force SpaceX to hire people non-ITAR individuals but rather to enforce the arbitrary legal definition of a US citizen.