This is completely untrue. The newest members of the LM family (5,6,7) are based on top of the line hydrolox and kerolox technology that is a priori incompatible with military applications. It was the first line of LM LVs that leveraged hypergolic propulsion derived from Chinas ICBM inventory.
Because it successfully debuted. A mission failure (LoM) is attributed when the LV is unable to put the payload on the required orbit. While there was a snag with the S2s YF-50D performance, S2 was able to complete the mission.