“Harmony in the ranks is a priority right now. We’ve just finished a war that a lot of our allies say was started by a human who defied orders!”
Much like when public opinion was against helping the Romulans, the Federation made sure Picard was shut out with no hope of redress. The UFP never lived down Michael's actions, not even to mention the almost as costly Dominion War much later, simply adding to a fully rattled Federation for generations to come.