In Prodigy, Nova Squadron has been revived by the mid-2380s.
This feels like a very terrible idea for a multitude of reasons. Besides the initial incident, I would think Starfleet would hesitate against elite cadet groups even further after both the attempted Red Squad coup and the USS Valiant incident.
Also, I have two takeaways from the LD Nova Fleet incident. One, Locarno feeling the need to “revive” Nova Squadron suggests that it didn’t still exist in 2381, meaning the revival must have been relatively close to 2384. Second, I feel like the coming back of a former “elite” cadet to bite them would further make Starfleet wary of establishing an elite cadet group again.
Overall, it just seems every time the Academy does this, they just produce a group of arrogant cadets very susceptible to manipulation and/or recklessness. Even 2384 squadron seems this way - we see their elitist attitude towards the former Protostar crew matching that of Red Squad and such.
So why did they do it again?
Perhaps Nova Squadron is a long-held academy tradition, and despite the initial fallout of the 2368 incident, that’s overshadowed by its long history of outstanding cadets, a legacy the academy didn’t want to suddenly erase.
Still, I feel like they could have turned Nova Squadron into an honors society that recognizes students without the special treatment rather than resurrect what seems to be the original format.
Honestly, I hope (big emphasis on hope) the new SFA show elaborates on this and overall fleshes out the Academy as an institution, at least before, as I predict will happen, our “cadets” will be starship officers in all but name by the end of the season and will barely get a proper academy experience.
I kind of wish we had an academy show either early 24th century (lost era Monster Maroon) or a chill (post-PIC) 25th or 26th century setting that just followed a normal group of cadets without weird stuff like an early commissioning.

I do have to agree. The setting may be the best part of later seasons of DISCO, even if they (in my personal opinion) frequently squandered it.
Like, I felt like they didn’t need to make up the DMA - they had practically seasons worth of material written for them just from the inherent realities of the setting.