Sure, and that honestly sucks to be in that position. The thing is if they meet the specialized experience and/or education requirements and the position is as competitive as you describe. Those 5 points should be worth just knowing the infrastructure, quirks, military hierarchy, best practices, current SOPS, and a whole list of other things a vet may already be aware of when they arrive at work their first day. Obviously, some of them are shit bags, but that is really not something this system can distinguish.
I'd imagine there is a large number of people applying in certain series and locations that feel like those 5 points is a big deal, but it isn't even about hiring vets or any crap like that. Hiring managers don't seem to have any problems justifying or not even bothering to justify skipping vets for more qualified candidates. Although I do understand what you were implying. I doubt it is worthwhile to make a case for the people at the bottom of a list being bumped regardless.