At some point in time, during a serving soldier's/sailor/airman's career, he will come across ammo that he will not hand in either from an action or on the range. Any type of ball ammo (cannon balls excepted) has found its way into their gear. The practice of handing unused ammo to a senior caused said senior some embrrassment so he put in the top shelf of his MQ wardrobe. Simples.
There was in my view a determination by N's wife to stitch Sgt. Nightingale up. That happened in full measure. His medical discharge has also perhaps been a kind of 'stitch-up' and now the matter is closed.
How his pension looks at this point in time is hard to say, but he has now been properly dealt with and he will get a job in due time. Sympathy can be very deep sometimes but also a great friend.