I’m not sure where our disconnect is. We have a situation where both sides can cooperate, one side can defect, or both sides can defect. Call it whatever you want, it’s the same scenario.

Here it’s with planning for military force. Do you risk a nuclear strike to save yourself from one? If you can get a first strike (defect), then you win. If you both refrain (cooperate), then you stay alive. If you both attempt a first strike (defect), you all lose.

Change the words around and it’s the same.

Both suspects don’t tell (cooperate), both get minimum or no jail time. One tells on the other (defects), that one gets off but the other gets maximum. Both tell on each other (defect), both get some jail time.