Heh... yeah, military laundry is generally not kind on clothing, but I expect ship based laundry is even worse. Gotta keep all the ocean's minerals from staying in after rinsing!
I've seen the "orange" problem with large batches of Bundeswehr Flecktarn produced in the late 1990s. Usually washing and wearing fades things out as with most uniforms, but in this case a few washes led to an overall orange look. There were other batches that faded differently than the norm, though not like this one. Such color changes can happen if the dyes they used weren't properly manufactured. Instead of washing out evenly some part of the pigmentation is more soluble. Or some such scientific process I only barely comprehend
My take on it is by the time such problems are identified the government already owns the stuff and it's too expensive to bother correcting it. Easier and cheaper to let the stuff process through the system. I can also see an inspector saying "hey, this is out of specs! We're not going to take it" and the contractor responding by saying "will you take it if we mark it down 50%?". To which, especially these days, the answer might very well be "OK, we'll take them this time. But try not to do it again".