I don’t think it’s obligatory for a civilian, CIC Obumble, to salute. Much better no salute than one with cup in hand.
You are correct. It is appropriate to acknowledge the salute with a nod or a comment. That would have been fine. But no, he just doesn’t understand what the whole “tradition” and “honor” thing means to the men in uniform.
A lot of people think this is silly. “it’s just a salute” they say. What they do not understand is the “optics” of this. Which is surprising because they all talk about the optics.
Doesn’t someone on his staff understand this? It would be better for people who do not understand this to just not try to salute, and simply acknowledge the “honor” guard.