Agreed... I think that there are contractual provisions that permit a drop out after the first year (but before the second year) where you don’t have to pay for that year of college. Otherwise, you do.
Same for academy accept the appointment and decide to drop out and you had to recompense - though after 2nd year completion of a 4 year enlistment was also required - at least back in 80s while I was there.
Both my appointment and ROTC scholarship (fallback plan) was predicated on passing a DFAS physical. I ran cross country so had to go back three times and drop off the team to prove I had no protein issues - running adds albumin to the blood - who’d thunk .....I digress....
Unless they changed the terms medical disqualification by the service did not create a financial burden on the disqualifiee as it was determined to be in the best interest of the service. However voluntarily dropping or being forced to drop due to inappropriate behavior, etc did subject them to the charge.