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Tomahawk was probably a better fit for torpedo tubes and such with its round cross section.
Yeah, but I'm not talking about SLCM, just ALCM and MRASM.
The Navy had already selected Tomahawk as its SLCM (for both surface ships and subs) when the Joint Cruise Missile Program Office was established in 1977. (And the USAF had selected Tomahawk as GLCM).
The Air Force had tentatively selected AGM-86A for its ALCM but by 1976 they realized they needed to rework it into the B version for sufficient range. They wanted to do that sole-source or by paper competition but in 1977 OSD directed a fly-off between AGM-86B and AGM-109. This was managed by the JCMPO from July 1979 to February 1980. By March 1980, AGM-86B was tapped as the winner, and it began to transition back to Air Force management. That outcome kinda feels predetermined. There were theoretical advantages to Tomahawk (quite a few successful flights already, lower cost due to larger production runs, etc.) but the USAF went with what they already knew.
Conversely, when MRASM was proposed as a shorter-ranged cruise missile for Navy and USAF tactical aircraft, there does not appear to have been any consideration of going back to AGM-86A, they went straight to Tomahawk. Because the USN was the main driver for MRASM and they wanted the missile they already knew as well.