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MOL is not cancelled and enter service along NASA Skylab. Each has its own manned spacecraft, let's say DynaSoar and Apollo.
In the end US governement find that having two space programs is rather expensive and decide to force an agrement between the two organizations.

NASA keep outer-space missions (moon and beyond) LEO and space stations.

USAF give up manned orbital flight in favor of suborbital spaceplanes.

Why such agrement ?

USAF had no interest in space stations or manned orbital vessels because spy satellites now do the job better.

On the other hand suborbital spaceplanes (let's say mach 20 and 100 miles ceiling) can do a lot of missions such as ASAT, ABM, recon over USSR, high-speed strike, and even satellite launcher if you add an upper stage.

In brief : manned spaceplanes for USAF, capsules for NASA.

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