CMS

There is case law that states that the BCMR can make rating decisions. However, they would usually send the case back to the PEB for adjudication.

Sure, cases like yours are fairly common. Which is, if you think about it, a shame.

CMS,

It sounds like you clearly should have been referred to a MEB and PEB and retired. The way to fix this is through an appeal to the Army Board for Correction of Military Records.
In your case, if you are successful, you will be eligible for Combat Related Special Compensation, which will give you access to both compensation from the Army and the VA. Look at threads on BCMR or ABCMR (use the search function) or if you can't find info, just ask in a thread. Hope this helps and that you get a good result.