The Misfits earned their nickname at Camp Golf because they don't fit into the Army: They're undisciplined, lazy, and they have absolutely no espirit de corps in the opinion of their commander, Sergeant McCredie. Only Corporal Mags, their squad leader, exhibits promise, but the general opinion is that a farm boy, a near-Fiend, and a smart slacker do not make a good unit. Mags is annoyed by what she perceives a dead end in her career. Their sergeant is annoyed by their lack of determination, but he's willing to do whatever it takes to whip them up into shape - if it kills him or them.
The Flags of Our Foul-Ups quest focuses on making the Misfits worth something and can be resolved in multiple ways. Depending on the choices, the Misfits can become a valiant unit shattering unit readiness ratings, drug-addicted berserkers who are shot for dishonorable conduct, or deserters who are hanged for cowardice before the enemy.
↑The Courier: "Sounds like you're a little disappointed in your troops." McCredie: "Disappointed? We call 'em the Misfits for a reason. They're undisciplined, lazy, and they have absolutely no espirit de corps. The squad leader's got some promise, kid named Mags, but as for the rest... I don't see much hope. I'm going to make them shape up if it kills me, though. Or them, for that matter." (McCredie's dialogue)