1.2.2.b indeed provides an exception for member states but explicitly only for the purpose of "Chapter 2 of Title V of the TEU". (this is a ridiculous level of indirection...)
Do you have an understanding of "Chapter 2 of Title V of the TEU"? My reading of it is "the members are responsible for the security of the union, yada yada..." so it sounds like the typical exception that governments have, but I am am not quite certain of my interpretation.
Jeez, the EU institutions are really good at being inscrutable :(
Chapter 2 of Title V of the TEU broadly describes the functioning of the European Union and the obligations of Member States with regards to the security and foreign policy of the union. The exemption in 1.2.2.b would rarely if ever apply to domestic matters.