I know of no requirement for a DD214 to obtain a CHP. I had one over ten years ago and was not even asked for one. The form did ask about military service. What is required currently is documentation from the state and federal/military health providers of a clean bill of mental health. Until the county receives this your application will not be forwarded to Raleigh.
Being in the military is not a requirement in NC to get a CHP.
As to the handle of your G17. if your gun is covered by clothing and not visible it is not OC. There must be no intent to hide your gun. What is normally covered by the holster is OK, so IWB is OC as long as the remaining gun is clearly visible. Don't even try hiding all but a small portion of the grip, you will likely take a ride.
If you are going to play games with the law, you should read US V Black. Being charged with conceal carry does not matter if you tried winging it, or completely conceal. If you wing the officer has RAS to stop you, and search. If the gun is properly concealed refer to US V Black.
I do not condone intentionally breaking the law, nor does this site. Make your decisions wisely.