But Iraqis picked by the US and Co, rather than picked by the Iraqis.

And it can be assumed that any Iraqi government will be required to go along with any contracts and deals made by the occupying administration.

.....

"if our intelligence knew, why didn't US intelligence? "

It seems pretty clear that the people in the field and the experts, did, and that they reported in these terms - but the people making the decisions didn't want to listen to anything that might get in the way of a pre-planned invasion. That applies both to US intelligence and the UK equivalent. "There's none so blind as those who will not see."