The government in the middle attack has already been disproven. You are not "given" BTC, you accept it. And a wallet, even one that supported covenant locked BTC, would not accept BTC locked in a recursively limited way.
Also theoretically if it would, then a government could simply use multisig to keep bitcoin permissioned. They would never give you BTC directly, they always move funds to a multisig where they are one of the parties in a 2 of 2. This way you must ask permission to move funds and they only grant it if you move funds to a 2 of 2 with themselves or another "trusted" authority.