You don't believe it because you are a Republican (ie, intellectually honest, logical, fact based). The cocaine story is not meant to sway reasoned voters. It is meant to depress the base and the uninformed. Based on what I've read on other threads, I think it is absolutely provable that Bush wouldn't have been subject to a drug test during his physical in 1973, but I doubt that CBS was planning on analyzing the story from that angle.
But were they done routinely (with the physicals) in the military? My retired USCG hubby says no, not until the 80's.