That said, IIRC For Official Use Only is the lowest level of classification (note not classified) it's not even NOFORN. It's even multiple levels below Sensitive But Unclassified.
So, who cares?
Much more significant is he failed the SCI/full poly... that means you lied about something. Yes I know polys don't work, but the point of the poly is to try to ensure you've disclosed everything that could be used against you, which ideally means no one could flip you or manipulate you. The functional part is to determine if you have anxiety about things you might try to hide, because that fear can be used against you. No fear/anxiety, or nothing you're trying to hide means you're harder to manipulate.
That feels bad even ignoring the whole hostile spys kinda thing.