Again, just talking about the resume as one part of an entire application "package." I don't think anyone is advocating fraud or deception. It needs to be disclosed. I just don't think the resume is necessarily the place to do that. Have you ever seen a resume/CV that actually had "I was terminated from this job" or "I was straight-up terrible at this job" written under a job description? It'll come out through references (or lack thereof), work samples, or through the interview. I think maybe my thoughts about the resume are being extended to an entire career.
I don't have time to go back and read through this thread again, but what I understand is that X called someone out on something he/she believed was unethical and was fired as a result, possibly because it is easier to fire someone during the probationary period. I don't know anything about the VA, but I have known many companies to fire people during probationary periods (or hire people as contractors before hiring FT employees to test "fit"), regardless of performance, if personalities clash. I don't know the entire situation here. BUT if it is a situation like that, which has little or nothing to do with patient care (or in fact may have actually improved patient care but just pissed someone off?), I think honest efforts at reputation management (e.g. minimizing this position on the resume so they can talk about it more during an interview) are appropriate.
Either way, someone had a bad experience as a first job out of grad school. This person is trying to figure out how to pick themselves up honestly and carry on. I think, unless there's something really terrible we don't know about, that is an entirely acceptable thing to do.