AS far as I know the employer can flag your name / past records with a code that says' not recommended for further interview eligibility' just so long as you are not flagged for some discriminatory reason like age, sex race et al ....and perhaps veteran status if that agency has a mandatory veterans preference as some do in PA.
OP! Get on with your life and apply places that better fit your abilities and expectations ....
OP! Get on with your life and apply places that better fit your abilities and expectations ....