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I don't think it is a big deal. I am not sure if this situation has ever played itself out in our local scene. If it has, it wouldn't be often at all, but I would be surprised if the GM recorded it anyway.
The most common scenario is the new player using a pre-gen. They get a chronicle and then make their own PC anyway.
I think it is the right call and there are so many scenario options out there that this can't really cripple a players ability to advance a PC. This is how Drogon runs it in our area. Granted he is a cheater, but it seems fair. :)