Your frustration is understandable, however (and this may not be helpful at this point, but I feel it relevant) the information is available in the Player's Guide:
One more thing to cover before moving on is recruits that are listed as ineligible.
In DIII, this means nothing, as DIII recruits need only to have a 2.0 GPA to be eligible.
In DII, this means that the player will sit out his first year as a non-qualifier. He will be listed on your roster, and take up a scholarship, but he will not be allowed to practice with the team. After this season, the recruit will have 4 years of eligibility remaining.
You mentioned that the recruit was transferring from a D2 school, so that means the possibility he was a non-qualifier existed. Are there things WiS could do to make this more obvious? Yes, but the basic information was/is out there. Ultimately I wouldn't expect this to be a major setback for your program, and hopefully this experience can serve as a learning tip for any coaches unfamiliar with this quirk...