Yes, but I guess command decided he wouldn't be a good fit to lead others because of his past experience which as not yet know when he was assigned to be the CO of VMX-1.

His past experience was known when he took that assignment. It was considered by all before he accepted it. That doesn’t mean his boss can’t fire him, but let’s not pretend that it wasn’t a complete reversal of what had previously been decided.

What is not clear is if this report was available when he got the job or not. Because "he crashed a plane unde difficult conditions" without additional context might be fine and then 5 months later the report comes out and it is not fine for him to be the CO of that unit.

And, being the military (and this also happens in big orgs as well), the people above him can fire hime from a post without much issues.