

Kirsten Beyer actually is on the record saying that this was confirmed to her when she was writing the Voyager Full Circle novels.
In those books, she has the incident and the consequences as part of Paris’ backstory that gets thrown in his face in a legal proceeding back on Earth.
My recollection is that she printed this in an author’s note in the specific book so it must have had legal clearance for the tie-in literature.



















I suspect that it had to do with the WGA contract at the time that TNG was in production.
Writers with a script credit got specific residuals for characters they created in a script according to what Beyer wrote. So, taking a one-off character and putting them in a main cast role in a new show would be providing creator credits for the entire show.
Chief Miles O’Brien is a different story altogether. Colm Meany was originally contracted as a background regular as the transporter chief but without a name. These kind of roles are reliable and keep actors eating while allowing them to audition for other roles.
According to what I heard at a Creation Con panel back in the early 90s, the showrunners eventually decided to give the character a name. Colm Meany wasn’t advised, nor was his agent — so Meany actually was raising a complaint that he was being replaced without notice, only to find out he’d been upgraded to a named part.