Time in Service is not the same as Time in Grade.
I was in a similar situation myself, and still had to get a wavier for my last promotion due to not having the required Time In Grade.
It’s all very curious why he is where he is. The Army certainly can’t pretend that they are unaware of him.
There were members of my class who were 2nd Lts in the National Guard for about six months before graduation. Then they transferred over to the Reserves on graduation.