So sorry to hear that your friend is having these struggles - unfortunately, I am very familiar with such issues as I deal with INZ on a daily basis as a licensed adviser, and I am shocked at the downturn in level of customer service the organisation is extending to all clients lately. The instructions about who needs to complete the INZ1200 form are unfortunately "restricted", meaning that they are not publicly available and known only to INZ themselves. Yes, this is incredibly unfair but it is what it is I'm afraid. I've had South African clients who have been asked to complete the INZ1200 form recently, when up until a few months ago, this wasn't required for South Africans - only other nationalities considered "high risk" (again, a list of such nationalities is "restricted").
The treatment of applicants by the offshore offices (namely the two branches of INZ based in India) is terrible, and the decline rates for visa applications for very straightforward and obvious visits are through the roof. The offshore offices behave like the "Wild West", where they make their own rules up as they go and to complain leads to an attitude of 'so what? what are you going to do about it?'. But please do go ahead and rattle as many cages as you can, as you've mentioned - the more people who speak up about the unnacceptable attitude of INZ's offshore branches, the more chance that something may be done to improve it (I live in hope!).