I'm not aware of that story, but there is much speculation about why Yeager was never selected for the astronaut corps. His biography (I haven't read it yet, it's second-to-next on my shelf) specifically mentions that Chuck "had the right stuff" which during the Mercury time was code word for "good enough to be an astronaut".
JC: Any regrets you were never selected by NASA as an astronaut?
CY: In order to get into the space program, you had to have a degree. I only had a high school education. In the early Mercury program, everything was done from the Cape [Kennedy] anyway. The guys didn’t have a hell of a lot of control, and that to me isn’t flying. I wasn’t interested.
