I’ve looked extensively into what would disqualify for VA rotations to no avail. Obviously some things are obvious but there’s definitely a gray area
I'm not sure how gray it really is. It is clear that ANY criminal conviction could be grounds for dismissal from school, or for denial of clearance to work at a VA facility.
It seems more likely to me that, in the case of a conviction for a theft that occurred while the student was enrolled in medical school, that the VA is not going to split hairs, and get into just what was stolen and how much it was worth, in making a determination. The path of least resistance is to just take a hard pass on the person.
I find it interesting that there are now 14 posts in this thread over 3 days, but OP has not come back since the initial post, which laid out the conviction as a foregone conclusion and was really asking about expungement, avoidance of disclosure, or "leeway" for convicted thieves. The consensus seems to be that engaging in this type of conduct while in med school is pretty inexcusable, and that the only clear path to licensure and medical practice is to avoid the conviction altogether, something OP has not presented as a possibility.
The bottom line is that the safest thing for all involved (med school, licensing boards, VA, etc.) is to avoid any potential for future problems by getting rid of this problem now, rather than wading into the gray end of the pool and hoping for the best from someone so lacking in judgment as to put themself in this position while a medical student.