Have Military Law Questions? Ask a Military Lawyer.
You would be barred from a suit of that sort, like a civil suit, based on the Feres Doctrine. That doesn't allow military members to sue the government for illnesses or injuries received during the course of their military service.
Your sole recourse is through the VA disability system, based on service connection for the injuries sustained.
The military is responsible. The fact that they have given you disability on that basis shows that they a legally responsible. They just don't carry the same type of responsibility because we are dealing with the federal government here.
They have something called sovereign immunity, which means they are not technically subject to lawsuit at all. They recognized that was a problem and so created certain limited rights to sue the federal government. The Feres Doctrine though, from the Supreme Court of the United States, limits your ability to sue the government for thing that occurred while you were in the service. I wish I could tell you differently here, but that is just the way the law is, coming from the highest court in the land.
The fact that you helped report this doesn't change the Feres Doctrine and it wouldn't actually make the military liable anyway. That's not a relevant fact to liability or negligence.
Your daughter can attempt a suit, but she'd have to demonstrate how she was damaged by the incident and how the military owed some duty to her. I don't see that on these facts.