I've seen and heard of people getting promoted to get them out of somebody's hair. That may involve a in-organization horizontal or vertical promotion, or a glowing reference for another job. Promotion for incompetence is a thing.
I'm not saying this was the case, but don't assume just because he was promoted or because they gave him a leave of absence (!!) that it must mean he was great.
If working at Yahoo is really so Kafkaesque that getting a promotion is meaningless in determining how you're doing and the value you're providing the company, then they deserve to lose the lawsuit.
I suppose it would explain some other things about how Yahoo's been doing recently.
That doesn't mean he was competent.