Here's why I see a "cave" of sorts.
Some of these actions include no banning or interfering with prayers or recitations at committal services; agreeing to not edit or control the content of private religious speech and expression by speakers at special ceremonies or events at the cemetery; and agreeing not to ban religious speech or words such as "God" or "Jesus" in condolence cards or similar documents given by some of the groups that filed the suit.There's no mention on any restriction of sending those condolence cards only to religious families.
That ties in with the fact that the VA said it was already doing many of the things complained against it in the lawsuit.
Now, if it was restricting religious people from religious activity at funerals of religious people, that's different. But, it looks like a cave, from what I know of the background, and religious groups have now been given the right to proselytize non-religious families. Here's more background, which the AP doesn't tell you.