@Stan Cooper
Could be, and that privacy rule is part of the reason the feds had so much trouble with eVerify. It prevented the agencies from comparing data and cleaning it up.
But I digress. All I know, going back to when I started getting my license in late 2009, the AME and the CFII were very specific that if I have military service and ever went to the VA; the FAA has the right to match and verify against the VA. It may be as simple as the FAA has historically been unable technically or administratively to perform the verification until now; or the FAA may have been notified and never decided to prosecute; or the FAA found a loop hole around the fishing expeditions; or the FAA broke the law.
Until the back story is published, no way to know.
Tim