On the "AFM 35-12"

Resolution Island, NWT - 1956 - Historical Report - USAF Historical Division

About a third of the way down, you'll find this paragraph:

DD Forms 722 and 722-1 are now on requisition and medical files will be completed in accordance with AFM 35-12 upon receipt of the forms.
AFM 35-12 is called "Implementation of the New Airmen Military Personnel Records System" at this page.

So AFM 35-12 is a section of Air Force procedures on proper record keeping. Since Bush's suspension from flight service is based on his missing a physical, and it is asserted that he will comply with AFM 35-12, it's safe to say (as I've seen a few bloggers say) that Bush was being required to take his flight physical, in order to get his paperwork up to date and resume his obligation to fly for the Guard.

He never did.