That's not how I interpreted the reference cited.

"A person authorized by the U.S. Armed Forces to conduct instrument flight tests, provided the person being tested is a member of the U.S. Armed Forces;"

In his case, "a person authorized..." needs to conduct the instruction.

I know it's nit picky but here's a Scenario. You are a military pilot with a FAA CFII and you instruct another military pilot in a military simulator but you are not an authorized military Instructor pilot. The way I read the regulation, the instruction is not valid for currency in this case even though the person is an "Instructor".

In these type of inquiries/postings, I find it better to simply cite the sources then give an opinion. Of course we all have a right to our opinions, or do we? The FAR's are under the Code of Federal Regulations. Perhaps one needs to be a licensed attorney to expertly express opinions on federal regulations otherwise one practices law without a license?