Maybe we're not meant to take it literally
This may sound like I'm one of those Harry Potter super fans who has come up with a convoluted interpretation that needlessly re-envisions the story, but here goes.
What if Michael and his mates all died in Vietnam and everything that follows is their journey through hell and back to redemption?
There are several unreal aspects to the Vietnam scenes from the very start (although I realise this was in part so the chaos felt more vivid when contrasted with the idyllic scenes of their home).
Michael (seemingly) manages to survive a horrific battle and almost immediately both his good buddies from back home arrive in the same village. Almost immediately (it's not made clear how) they are captured. They manage to escape and almost immediately are rescued. Nick for some reason disappears into the Saigon underworld (purgatory) where he is trapped in an eternal cycle of Russian roulette until Michael returns and somehow frees his soul.
Or maybe...Michael survives Vietnam, but has gone crazy. Maybe when he and Nick were playing Russian roulette the first time, Nick died (it would explain why his girlfriend never hears from him again). What follows is Michael imagining himself as the big hero who manages to save his buddies from the prison camp.
Or maybe...there's an hour or two of footage that fills in the gaps and makes the film more straightforward?!