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It is just WalMart store policy. Unfortunately there is no law that says that they MUST sell to an eligible person. May I ask why you showed any ID other than your Military ID card and orders? That is what the BATFE requires us to show to prove residency.
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Some stores are finicky. Down here in VA...you only need Military ID and orders. The only store I've found here in Hampton Roads that follows that is Bobs Gun Shop. Otherwise, Dicks, Bass Pro, and Gander Mountain [Walmart doesn't sell firearms in Hampton Roads period] all require other things, a lease/bill/bank statement with local address, drivers license, orders stamped original, etc. Store policies that come from up high for nationwide purposes.
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While military people have orders to a particular location, they also have a home of record, which is usually where they enlisted.
If the military member has a Iowa driver's license and he enlisted there, it doesn't matter where the orders send him.
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Just to elaborate. While a person is serving in the military, if they are sent to a state other than their home state, with permanent orders, they are considered a resident of said state for all purposes. They are hence essentially dual citizens, of their home state, and the state they have been sent to. Certain things don't apply, like you're only allowed to vote for your home state, etc, you are allowed to purchase firearms while considered a resident of the state you are stationed in. This is a typical law in all 50 states.
So to follow your example, if a person has Iowa as their home of record, and are then sent to say Virginia, they are then considered residents of both Iowa and Virginia for most purposes, the one being applicable here, purchasing a firearm.