A company in my hometown makes parts for defense aerospace, the oil industry, private military contractors, and hyperscale data centers.

Are they spying on your Azure servers? Unlikely, they make hose reels and related round metal things.

Sometimes little (or big) companies like that get involved in weird lines of business because they buy other companies for the contracts.

Looks like a defense contractor to me. If you pulled two random things out of my company's roster, you could probably spin an equally suspicious narrative.