It wouldnt have been fair to not allow msc to race considering why he failed to set a time.
and I dont believe there is any such rule. As far as I'm aware, the only regulation pertaining to 107% rule is article 36.3 of the sporting regulations, and its quite simple.
FIA Sporting Regulations 36.3 wrote:During Q1, any driver whose best qualifying lap exceeds 107% of the fastest time set during that session
will not be allowed to take part in the race. Under exceptional circumstances however, which may include
setting a suitable lap time in a free practice session, the stewards may permit the car to start the race.
Should there be more than one driver accepted in this manner, the grid order will be determined by the
stewards.
In either case, a competitor will not be able to appeal against the stewards decision.
*Quote added.