Is it true that to acheive a rank greater than 03, that you must have a Masters degree?
I.E. with only a BA/BS it's a career stall in the military?
Look at it from a promotion board's perspective -
Before the promotion board convenes, there are officers (not the selection board) who vet your file, and prepare a summary slide of you - who you are. They lay out your career and your performance to date - especially things that make you stand out in contrast to your peers (good and bad) no up to date photo has been mentioned as a downer a lot.
When virtually all of your peers (at least on the Navy) have a master's degree and you don't - it will stick out very clearly. It's not a killer, but your sustained performance at sea will really have to make up the difference as to why the board should promote you when you haven't marked off the expected wickets of which having a graduate degree is a "wicket".
Depending on how large the promotion group is,the board may review a couple hundred officers in a day to determine who to promote and who not to promote.
That officer who vetted your file and made up the summary - he stands in front of the board and flashes your life/file up on the screen and pitches/ summarizes you for the board - then board says yea or nay - then you're down (you're up on the screen for about 15-20 seconds - a minute at most) and then it's off to the next officer for consideration
So it's kind of like a job interview except you're not there and you have that brief time for the board to get an impression. It's not so bad when they're looking to promote 99% of you - but when promotion rates go down and you're wanting to stay in the service, you don't want to be in the pile that's passed over for promotion.
You still might get picked up on your second look for promition, but it's not very likely that you'll get promoted the second time around - again there are many exceptions, but the ones that got picked up the second time around really had to bust their nut to get picked up.