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Candidate has failed to meet established performance requirements.
Thorough Assessment of subject's condition and circumstances has
concluded any probability of recovery and/or regaining prerequisites to
be minimal. Research resources have been reallocated. This decision is
final.
It could be that the idea is that the whole Shinikami program is being terminated but Asuka, by sheer determination, escapes retirement unlike the rest. Another theory I've seen floated is that there was some sort of battle royale where the clones where forced to destroy each other personally, but I don't see how this letter supports this, as you wouldn't send this letter for a dead clone, you'd sent it when explaining the decision to retire a clone. But if it's the whole program why refer to it collectively as "candidate?" Another possibility is that they where competing indirectly - whoever performed the best in some sort of trial was retained and the rest where scrapped, and the letter is shown right around when just two clones (candidates?) are left, with rejected clones getting copies of that form letter. But, then, why would Asuka have a memory of the letter that the dead clones got?