I spoke with some SME’s in the admin field. As I understand it you are medically excluded from the overweight program but you must remained flagged because you do not meet the standards of AR 600-9. If your condition inhibits your ability to remain in the Army you should have been referred to a medical review board.
AR 600-8-2 states: 2-3
c. “Noncompliance with Army Weight Control Program” (Flag code K). The effective date of the Flag is the date that the Soldier was found to be in noncompliance with AR 600–9. The use of certain medication to treat an underlying medical disorder or the inability to perform all aerobic events may contribute to weight gain but are not considered sufficient justification for noncompliance with AR 600–9 and the Soldier will be flagged. Soldiers will not be exempt because of chronic medical conditions unless an exception to enrollment in the Army Weight Control Program (AWCP) is granted by the DCS, G–1. In the case of a pregnant Soldier, if the Soldier became pregnant prior to being entered into the overweight program, the commander will close the Flag using codes KZ, not KE. If the Flag was
initiated before pregnancy (as determined by her primary care provider) the Flag will remain in effect until the Soldier complies with AR 600–9. Remove the Flag (code E) on date of compliance.
You might want to consider writing the DCS G-1 to request an exception to policy. If you decide to go with this course of action you should contacting JAG and ask them for assistance in preparing the request. I am sure the Army would also want to look at your current DA Photo as part of the request to see if you present a good military appearance.