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Yes such a scenario does happen wherein the manager due to lack of business process knowledge or specific service knowledge performs two mistakes:
1. Acts as a mediator between the client and his team. Due to lack of business understanding stems the fear to ask the right questions during requirement collection phase. This inturn leads to a flawed deliverable definition.
2. Due to the fear of losing authority the manager tends to act as a wall between the client and his team lead. This further worsens the project and results in poor output from the team.
3. Finally in many cases due to lack of clarity in defining the roles and responsibilities of a manager, the manager finds it an easier option to pin the blam on the team lead.
4. None of the team members would ideally stand up in support of the team lead fearing a negative backlash from the manager. And yes as you righly said before the probation period ends the employee is terminated.
Note:
I would advise you to stick to the company because experience has taught me in such a situation you will realize your full potential.
There have been cases where the client has offered the wrongly fired employee with a job because the client knows your worth. Bottom line now you are at a position to manage your manager :-)
