SPHLC:-
I think you have that 100% arse about face.
So they settled out of consideration for the family? That would be a first! The MOD is less concerned about liability (after all the pay-out is our money, not theirs). Their worry is that evidence should not emerge of any MOD negligence or incompetence. That is less likely to happen if the sequence is as in this case; settle, allow late sight of SI report to family only, ensure that their version of events is about all that is available to the Coroner, finally release SI report after Inquest. MBA taking the hit makes for a satisfactory outcome all round.