Yeah but even what he is saying is horse shit.
I've peaked behind the curtain myself and seen what appear to be technical inefficiencies compared to what you find in the private sector. However, you quickly learn why government systems are slower to adapt than private industry.
Availability is usually the reason government systems are upgraded at a slower pace. In the private sector downtime is measured in dollars. In the government sector it isn't, it's more about the impact on the particular agency's mission. Take down a utility's distribution network and thousands of people lose power. Fuck with the Social Security payment system and millions of elderly Americans don't receive their fixed income.
You balance the inefficiencies for stability because citizens rely on many of these critical systems. This is the part that infuriates me the most. Musk doesn't ever address the people that rely on all of these government systems. He treats it like it's fucking Twitter.