CAGE code is an extension of the part number. It is used as a shortcut to putting the full name and address of the maker of a part into the tiny box on the PL. Without the CAGE there is no way to tell where a part comes from. It is not only a military requirement, but is used for all government procurement and accounting. Did you know that the #1 qty of CAGE codes is for Sherwin-Williams? That's because they supply paint for painting federal offices nationwide. The CAGE on each contract is for the local supplier of the paint, which is also where the payment is made.
In an assembly there could be two different parts with the same base part number, but different makers. The CAGE is the only way to distinguish them.
Perhaps they are thinking that since the procurement system already records this and since the drawings aren't deliverable, as they might be under a military contract, that they are covered. True, but it leaves them open to synchronization errors where there is no way to discover when there is a lack of synch. The joke, a man with one watch knows the time; a man with two watches is never sure? The inverse of that is that a man with one watch doesn't know anything about how well his watch performs; a man with two watches can compare them and see what causes one to slow or run faster than the other and is better equipped to spot problems.
The alternative to using a CAGE on the PL is to assign in-house numbers to purchased parts and make drawings of those purchased parts that call out the maker name and address. In fact, most defense contracts prefer this because that independent drawing can have all the information that is critical to using the part, allowing inspection to verify that, over time, the part maker doesn't alter the construction of the part. And yes, suppliers change the functionality of parts with no change to the base number all too often.
In addition, the separate drawing allows for the case where the original part goes out of production and an alternate is required. Without knowing the important characteristics of the part, it is an expensive operation to retrieve that info for the purposes of either designing an in-house replacement or locating a new supplier.