One question, you said
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the unit didn't start the process until July 08.
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Does this mean your MEB has been initiated? If so, the process before they finish the Narrative Summary can take some time.
As far as INCAP pay, I would check with your chain of command, see what they say. If you are not happy with the answers, you might want to consider making an IG complaint. There are appeals you can make after a denial, but in most cases, this is not necessary.
You can also try to get put on orders and transferred to a Warrior Transition Unit or Community Based WTU.