My gut feeling is this has to do with the problems with a couple of the DS getting out of hand with the recruits.
Some types of S do go uphill.
The Company Commander went to jail for that. The Bn Cdr. may have been dinged for it but I haven't heard anything about it. The more I think about this, it almost has to be personal conduct. Otherwise, he would have been quietly retired. If it is personal conduct, I hope someone has remembered the Boorda affair.