As far as an answer to what you are looking for, I think that Warren has hit the nail on the head. How can the Doctor know what he is looking at?? Wait for the biopsy, then you will know...
As far as the question about it taking 6 months for BCG to take effect, I actually don't think that is so. BCG takes effect as soon as it hits the bladder. I am not a researcher, but, I have talked to various Doctors about the effects of BCG, and my GP seems to think that within 6 months the BCG would be out of my system and therefore should no longer be an indication as to my arthritis. Talk to the different Doctors about BCG and you get lots of different theories and ideas. The truth is that no one really knows why or wherefore of BCG, it seems to just be the best shot in the dark, with the best outcomes.
BCG "failure" is the window of time during the treatments when there is recurrence.
That is a horse of a different color.
So, this white fuzzy place did not appear DURING treatment, and your Dad went a full year without his alleged recurrence?
Best of luck
Ro