More than 500 Defense Department employees in Europe and the Pacific were notified this week that they were erroneously given housing benefits and must now apply for a special waiver to avoid being indebted to the government for all past allowances received, according to military officials. Effective immediately, those workers will no longer be eligible for Living Quarters Allowances—a benefit that subsidizes rental and utility costs and can add up to $50,000 per-year in some cases. Defense officials on Thursday were unable to provide a complete tally of how many overseas employees were affected by a DOD-wide audit that was...