If you take Elon out of the picture (as well as his employees), it would not be self-dealing.
Ok, so that's the objection now, when Musk is a quasi-official member of the government.
What was the objection under the Biden administration, when he had no affiliation with the government at all? If the reason Starlink was excluded from consideration was bad faith and itself corrupt - the Biden administration didn't want a contract to do to someone who was viewed as the enemy by auto unions - then surely reconsidering that decision now is not corruption, it's reversing corruption.