Yes, a terrible fire, although there are efforts ongoing to restore some of those files, even reading the data from charred papers and edges with newer technology.
However, these particular files (benefits claims files, or C-Files) are a different type of file and never burned. Better yet, they often have some parts of the veteran’s OMPF that were copied *into* the C-File, to establish eligibility for those benefits — copies that were made before the fire! In other words, these files could serve as partial backups…
