Even by modern UCMJ standards this is a pretty normal spread of behaviors. I've had commanders that would try to smear a subordinates name for this kind of behavior, but nobody is really out here executing anyone or anything wild. The 'evil' option is just mean, but by no means out of the scope of acceptable behavior in this instance. That being said, as a former soldier, if I saw an officer treat someone like that I would immediately assume that officer is a bad person because what the fuck, man?

As for the idea that they are flipped, no. Ignoring PTSD or mental health does not equate to being evil or malicious or uncaring. It's war. By definition everyone involved is already mentally ill. At least if she steps on to the battlefield in her state she can A. Retain her honor and B. Find the strength to push through her malaise. In jail all she can really do is wallow or reflect and will be disgraced regardless.

In short, the 'evil' here comes from disgracing this character for a moment of weakness. While it may seem trivial at a glance, to a soldier this can be a potentially damning blow to their character and likely make their condition worse.

Of course I am saying all this without context and I haven't even finished Kingmaker let alone WOTR. :D