The military may have laws/rules to report misconduct, but structurally, units are incentivized to hide misconduct (e.g. “handle internally”) because they don’t want the embarrassment. More importantly, failures by subordinates are often seen as leadership problems (you can make an argument that in many cases this is true) which mean officers and SNCOs are likely to sweep them under the rug if they can.
I saw many, many cases of this in the USMC. DUIs turned into “wet and reckless” because it involved a SNCO (an NCO or lower would have lost rank). NCOs (rightfully) pressing charges against subordinates for misconduct, only to be pressured by company/battalion leadership to accept “alternative punishment” (which often amounted to nothing). A let’s not even talk about all the case where there was sexual or physical abuse that went unreported despite everyone knowing it was happening.
The only time the military is motivated to act on misconduct is when it can’t hide it.