No one should be surprised. The academies are hard to figure. Argue if you like, but the academies (USNA In particular) will admit whomever they want, regardless of the competition, and they will reject whomever they want, regardless of qualifications. They are checking boxes. Diversity, check. Gender, check, athletics, check. Prior enlisted, check. Prep schoolers, check.
The young man that earned a principle nomination... in his second year of applying, deserved his appointment. I don't know what reasons led to this, but if he is a good citizen, and kept his grades up... he should be heading to I Day.
This is a perfect example of why those who are rejected should think long and hard about dedicating their time, heart, and souls to reapplying. There are no guarantees. I wish all reapps luck, but it's tough to get in that way. Don't be discouraged, but go in to the process with eyes open.
I have said it before, principle nominations should be ended.