It is very frustrating for any eager and high achieving 17 yr old to be told such a thing during one of the most important interviews of his life such negative info. I agree- it is totally unsatisfactory, to say the least.
He did not receive any MOC nom. He also applied for a VP nom, but heard nothing. A fellow Marine friend (USNA alumni) mentioned that MOC staffs/offices should let this happen and should award nomination to the most deserving candidates, period. In the appointment thread, there are few to none of appointments with just ROTC/Presidential noms without also having MOC noms.