It sure does.700 extra ensigns for attrition is absurdly high
Historically, API attrited about 10-20% for various reasons although some years had some pretty wild swings ( @Uncle Fester probably has more accurate facts and stats on that), primary below 10% although it was in the teens for the first few years the T-6 was online (T-6 was little harder to fly which meant it was easier to let it get away from you and do something dangerous, in a nutshell), and both maritime and helo advanced were low single digit percent. Jet advanced was higher but the bulk of those attrities seemed to be DQ at the boat (and often those particular guys successfully recycled through one of the other pipelines).
So yeah, for a system that is set up to wing less than a thousand pilots every year, 700 sounds like there's a piece of the puzzle missing. Maybe NIFE is structured much, much differently than API+IFS; stranger things have happened.