It looks as if the Navy did not perform their Due Diligence.
I’m pretty sure there was due diligence.
I don’t know what it’s like now, but in the 90’s every ROTC candidate (Army, Navy and Air Force) had to undergo a very thorough physical and each physical was reviewed by the Department of Defense Medical Review Board (DODMERB) before a scholarship was awarded. These physicals are much more thorough than the MEPS physicals.