Fuck that shit. Shouldn't have happened in the first place, but anything other than honorable is an insult to every service member on top of those being discharged like this
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It looks like its only for officers looking at the article this one links to which is really weird.
If I had to guess assuming that is the case, it's probably because those individuals have qualifications and clearances that would allow them to get a good job after discharge in other circumstances. Discharging them like this would bar them from any of those jobs outside of the military. Whereas for a random grunt all they can really do is kick them out and make them ineligible for benefits. So it's just the Trump Regime being as cruel as they think they can legally get away with.