It's a weird one for sure. We'd probably need to know more about his extenuating circumstances about why he didn't stick around that last semester. What was this reasoning? Criminal record, Health issue, etc. It doesn't sound like it was financial if he remained at A&M but just not in the Corps.
When I was in the Guard, we had an SMP cadet who showed up one day wearing his E-4 brass instead of his one moon cadet brass because he found out he wouldn't be able to commission. Something to do with credit rating and possible fraud. So he reverted to being an Enlisted Man again.
As far as misrepresentation of himself - if he did 7 out of 8 semesters in the Corps, does it really matter which semesters. Heck, in the Band, we had dudes who missed not only single semesters but entire years. That's why most folks get their letterman's sweater their Junior year but some don't get it until their Senior year if they've missed a fall marching semester.
I think it would be strange and definitely not something I would do.
But on the other hand, it's not like he dropped out during FOW and then borrowed some midnights 4 years later.