I was friends with a few people who failed out of Prototype. Each of them struggled at the start and made it nearly to the end before it was obvious they just didn't have "the right stuff." Don't get me wrong, they are great people but if you're putting in 40+ hours 3 weeks form comp and still failing tests they can't keep you.
As far as I know what happened is this:
1. They got de-nuked, but kept their rate and rank. So my mechanic friends are now conventional E-4 mechanics.
2. None of them talked about having to repay their bonus, but I think that's because they hadn't gotten it yet (1/3 after NPS right?)
3. The ones I knew personally were all sub guys, so they went to Groton for sub school (where as a PO3 they were the same rank as the SLPO)
4. Then to the Fleet.
I don't know if their contract changed at all (whether it was still for 6 or if it shifted to 4 because they didn't complete the pipeline.)
...reading your original post again you asked about officers... and my answer was for Enlisted. Oh-well I'll post it anyways, just to give you an idea... I guess.
