AR 615-368 became the direct descendant of section VIII and dealt with "habits and traits of character" which serve to render retention in the service undesirable and those who were "disqualified physically or in character through misconduct." Individuals discharged under this regulation received a blue discharge, unless the reviewing authority determined that an honorable discharge was to be given under AR 615-369.

The next revision of AR 615-368, issued on 7 March 1945, provided, as previously, for the elimination of enlisted personnel with undesirable habits and traits of character as follows: "Psychopathic personality manifested by antisocial or amoral trends, criminalism, chronic alcoholism, drug addiction, pathological lying or sexual misconduct in the service."

There was much dissatisfaction with these administrative discharge procedures, regardless of the need for such action. The psychiatrist was unhappy because of the considerable time required to evaluate the individual, to submit a certificate, and, when necessary, to appear as a witness. Unit commanders were unhappy because the officers comprising the "Section VIII" board were taken away from their primary mission of training. Also, many senior officers believed that administrative separation reflected adversely upon command and leadership ability. This belief was one of the major reasons why unit commanders attempted to use medical channels to rid themselves of soldiers who should have been administratively discharged. Other unit commanders believed that since the Medical Department, especially the psychiatrist, was so closely concerned, it should be a medical problem. Yet, in effect, the administrative procedure was an administrative problem and properly belonged in the domain of the unit commander.