The US really doesn’t get the definition of voluntary lol. Private churches with ‘voluntary’ demands for money (that’s called a subscription), and this.
I’m a recently separated transgender veteran, and I’m well connected with those directly affected by this. Most branches are taking a similar route with a option to either voluntarily separate or else involuntarily separate after a board meets to separate you. Involuntary separation will take a much longer time, however some people still might like to take it just to be done with the military.
There’s very likely going to be a temporary restraining order on the effects of these executive orders. The case to look at is called Talbot V Trump. We are expecting to see it issued in the next week.
That’s not how contracts work?
People can be separated from the military for a number of reasons including medical reasons, disciplinary reasons, inability to do their job, or other reasons. Most people will be discharged under honorable conditions, (unless there are other conditions that would characterize it differently)
I had a friend that separated early because of something the Air Force deemed “failure to adjust to the military environment”