If you were able to reclassify, depending on how your squadron commander felt about you washing out (and with respect to overall USAF manning needs), you might have been given a chance to pick from a short list of jobs that are hard to fill. Or not given a chance to pick. This is how someone who originally signed up to repair aircraft can become an admin or in the security forces.
The unfair part of how the Navy is treating them is that they're doing this to sailors who failed BUD/S because they got injured. It's one of the toughest schools on the planet and getting injured is a distinct possibility[2]. The Navy is wasting talent by having them swab decks. They should identify the ones who rang the bell for reasons beyond their control (like getting injured) and show promise, and let them pick a new rating based on their ASVAB and physical abilities.
If they failed BUD/S because they rang the bell because they'd had enough - then the SEAL culture means you get reclassified to whatever the service needs.[3]
[0] In casual status you will be cutting grass, cleaning windows, picking up trash, etc. It's easy work but you will be closely supervised.
[1] An administrative discharge can be Honorable, General, or Other Than Honorable. Washing out of tech school makes it very unlikely that you'll get an Honorable, meaning you won't get many veterans benefits after you leave.
[2] Even in the USAF trainees can get injured. I met someone who was training to be a linesman when their climbing spike came loose and they fell 30 feet, breaking their leg. After the bone knitted back they were in casual status waiting for their class to begin - but not as a linesman.
[3] USAF Pararescue (PJs) will have you interviewed by the commander to see if you have the right attitude to try the course again. Otherwise you get reclassified. Fun fact - most people fail the PJ Indoc class because their swimming skills aren't good enough.