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Under USC 10, 18 years (sanctuary) is the standard, not 15 years for full retirement. Hit 18 and they have to allow you to complete 20 years. Sanctuary is the holy grail for reservists, but applies to active duty as well. During the war the threshold was fought numerous times in military and civilian venues and was upheld.

Regarding the transgenders. Medically retire them. If they served beyond their first enlistment they will receive a substantial severance package, and may be eligible for some VA benefits including a stipend. With what little I know about the case that may be the sticking point. At what level does the VA rate transgenderism? While most trans would argue they are normal to get VA benefits they have to argue trans is abnormal. If the VA does not rate it as 100% or Individually unable to work, they will lose benefits associated with retirement. I had to deal with this as part of my job during the war. I fought tooth and nail for the warfighters, hated the scammers.

The DoW should Medically sever them and let the VA work out any compensation for their mental illness. While the severance package would be substantial, it is a one time deal unless the VA rates them. They want a standard retirement becasue it is worth more money over a lifetime. Without 100% from the VA they get no base privileges, no TRICARE for Life and a very small monthly stipend from the VA. If the VA determines they are unable to work, they could rate 100% disability privileges. Gender dysmorphia does not prevent you from working so unlikely. They should take a medical severance and fight with the VA for a disability rating.

None of what I suggested is unfair to them. Everyone sympathetic to them fails to understand one aspect of this. Wear the uniform prescribed for your biological sex. Do not participate in HRT treatments and in five years you get a full retirement. No different than do not do drugs for 20 years and you get a full retirement. Failure to do that and they now have a medical condition that precludes continued service in the military. In the end they and their lawyers are playing on the public's sympathy for veterans, especially those who went to war. But as transgender they are not deployable and like anyone not deployable they need to be severed. Honorably but never allowed back into the service.