The crucial detail to buy the story is that Jim Frank told Dobson and Selden the truth:
They were pulled aside by a senior researcher, Jim Frank. "Jim said, 'I bet you guys want to know how it turned out,'" Dobson recalls. "We said yes. And he told us that if it had been constructed, it would have made a pretty impressive bang." How impressive, they wanted to know. "On the same order of magnitude as Hiroshima," Frank replied.
The way the project was described to work, information was going only one way (from students to researchers) with the flow the other way on a strict need-to-know basis (where need-to-know means need to know in order to deliver the results). Once the students delivered the results, there was absolutely no need for them to know if their design was successful or not. It is incredibly naive to think this was not classified.There are now a number of options: 1. Frank disclosed classified information, 2. Frank told them some bullshit, following some instructions, 3. Frank didn't tell them anything, and Dobson and Seldon were instructed what to say if anyone asks them, 4. the whole episode is come corrupted memory: maybe Frank gave them a nice pat on the back and decades later Dobson remembered a much more impressive congratulations, just like hunters remember they shot a bigger game than they did.
From all these options I find the first one the most unlikely. By far.