Every PPL and CPL student I have recommended for a flight test in 28 years of full and part time instructing has passed their test on the first attempt.
It is the instructors job to make sure that the student has the skills and knowledge to safely fly an airplane.
With respect to the original posts, my thought is it has to be a wind up. The situation described is so far from normal flying instructing general practice that it makes no sense.
In any case, if true the good news is that no student could pass a flight test operating the way this student is, so he will never get licensed