I'll take this response as a "No, I've never served in the military." You've also not substantiated your claims about how the military cultivates a culture of 'cheating.' At least give an example of what loyalty means to you, because it's certainly not going along with the actual definition of it, which does not require any sort of just cause or rational thought attached to it.
> The “drilling” you referred to is more comparable to brain washing than loyalty bound to reasoning.
Yes, and? It's training soldiers to be loyal to each other and to their superiors which are both important factors in battle readiness. You need to be able to follow orders in extreme situations and you need to have each other's back. This is taught to all SMs going through any training in practically any military in the world.
> Yes, loyalty is an [ideal] frequently never found, but to call someone loyal because they signed a contract or because they know what will happen if the report those willfully breaking the law, to me is not loyalty.
There's a thing called "unlawful orders" in the military. If a superior officer/NCO issues one, it is your duty to disobey it. This is easier said than done, of course. In either case, this is tangential to my point. What even is loyalty to you?