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Your discharge status can't be changed without going through the discharge board.
If your discharge narrative reads "misconduct" it is because that was the basis for your discharge. You were discharged under an administrative discharge chapter called "misconduct" based on the facts concerning the arrest.
Getting that upgraded to an Honorable rather than a General is the only method of having that discharge narrative changed on your DD Form 214.
As for having the arrest record removed, it's not legally possible. The military records on arrests are treated in the same fashion as their convictions, they are not expungable. There isn't even a process to do so. As unfair as this is, it is not unprecedented as there are many states that treat their arrest records in the exact same fashion.
I wish I could tell you differently here, but I can't.