Yes, they qualify for the exclusion.  I disagree with TaxMonkey and itonewbie.

1)  Assuming the taxpayer was in the military the entire time, the period is extended by 10 years, not to 10 years.  So it would be a 15 year period.

2) Assuming it meets the 50 mile criteria, it was a "change in place of employment".  That is a "safe harbor" so §1.121-3(b)(1) does not apply, so the long period between moving out and selling it does not matter.