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I actually know a soldier who failed his annual medical because his BMI was too high; his totaly body fat was less than 2% - he was all muscle. He exceeded all other aspects of the medical (i.e. completed the run quicker than needed, did more sit ups than needed, did more push ups than needed)... but they failed him and he missed a deployment.
MG, I live with one of these. Fails every year! However, mine gets his muscle-fat ratio calculated and they pass him on that, has been deployable the entire time.