Sorry to hear about your husband's situation. It is unfortunate that he could not graduate with a first author publication. I, too, am surprised by that. No one should have to "compete" for first author.

When I did my master's, I elected to get a non-thesis master's (2015). That's now an option, and I was okay with that. My degree is in CS (technically CE) and my undergrad (2013) was in a completely different area of study, so I preferred to get the non-thesis in order to take more coursework to figure out what I really wanted to do. Plus, as an undergrad, I did do research and publish a paper, but I eventually found out that research "wasn't my thing," so I decided to go with a "terminal degree" -- i.e., a degree that wouldn't get me into a PhD program. But I do empathize with you because I know what it's like to do a ton of research, only to have yourself put as second author, or even third author. (But I was a mere undergrad, so my lab could "get away with it," sadly.)

Not sure what to suggest about the research. Grants are a pain in the @ss to get. And some universities ARE very punishing about which # author you are. I'm guessing he never came up with his own research idea? Or if he DID come up with his own idea and designed the project HIMSELF, then that's b*llshit.

Congrats on the therapist, though. I hope it works out for you.