This manager needs to be fired - yesterday. I’ll call Chili’s headquarters on Monday and express my views.
No, the manager should not be fired but demoted to a long term of KP duty. He should be a French fry cook for about six months and taught that the only thing he can say to a customer is “You want fries with that”.
Lesson to be learned, “Don’t screw with America’s veterans”.
The manager made a mistake but does not need to be fired. That would not be right. He will be a better manager for the incident. Experience is a good teacher.
If he had legitimate ID it really wouldn’t matter what he was wearing, or what the customers think a “real ex-military” person would be doing/not doing right?