No if you destroy the team it just makes them like majorly unfit, like 10% fitness but they still get picked.. but that theory could be cleared up by the guy posting a screenshot of United's stats, I think it's the tab called "away stats" no sure.
But that's the best result I've ever seen on an FM game.. Although in FM 07 or 08 I went on holiday (in game) for a season, and there was a random glitch where my team fielded no players and I got beat like 99-0 by crystal palace... Was odd.
Well I have destroyed teams before using the FMRTE feature on a few occasions in some joke games where I know they won't be continued, and everytime they have fielded their reserves and/or under 18's.
Still waiting for the screenshot of the two line-ups if possible please mate.