I've not heard of any accident, let alone incident, of a student losing directional control while raising the flaps on a touch and go. The most common incident I have heard of is PIO, which should of course be briefed to go-around, and would occur regardless if unstable. Certainly not a directional control loss on ground or incident due to takeoff with full flap on solo flight.
Perhaps someone who made this absurd decision could point people towards one - not to mention one without mitigating factors.
Most of the real world permits touch and go at second solo, leaving the only justification appearing to be financial...