And they are having a very hard time recruiting.
Yep. The military can't afford to kick anyone out. I'm seeing this in the Navy. High-year tenure waivers, orders extensions, denial of early separation requests, even changes to the physical fitness instruction to make it harder to kick people out for failing multiple physical readiness tests.
On top of this, and I say this as someone who has been serving for nearly 19 years, there is NOT a problem of white supremacist extremism. They were chasing ghosts. In the Navy, at least, people of all races and backgrounds work together, eat together, sleep together, and live together. It's a lousy environment to be a racist because you'd have to spend so much time around races you don't like.