The "gouge" in the mid-2010s was FAA and VA couldn't talk, so a lot of people were very honest with the VA on discharge about stuff like PTSD and TBI to get 100%. Legit claims that were verified by civilian docs as part of the VA Claims process. But then they never reported it on their MedExpress FAA stuff because they require lots of tests and a Special Issuance, so then the FAA catches you in a lie, and can then throw the book at you.
And yet the FAA wonders why people don't want to talk about mental health with them!
I'm savvy on all that, but if you read the article, the new news is that (again, if true), the VA may have potentially violated CFR by passing along your VA info.
Probably the more realistic series of events was that the VA stayed just inside the legal boundaries and only notified the FAA about how many potential pilots have disabilities, but it's still a frustrating act, and information the FAA wasn't asking for (at least officially).