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Exactly. If he has control of the entire department and the only immutable record is contained within the department… That record is now mutable. The point of blockchain is to be a distributed ledger, which is impossible to fake due to the fact that there are so many identical copies. If there is only one copy, (or to be more specific, all of the copies are under the control of a corrupt department) it’s not immutable.
A key thing is that it pretty much needs to be a public blockchain of enough scale as well.
If the US government had a private blockchain with a thousand copies all over the country, DOGE could still step in and take control of the entire system and start editing it. It would be much harder, but possible.
By being public you can't compromise the entire system, and the larger the system gets, it gets crazy expensive to try and attack it, and it's better to just play along with the existing incentive structure then waste money on an attack.