Cloud goes on to say that he was “prejudiced” back then. In reality, he wanted to be apart of this group, but Tifa was always so concerned with the things going on with her life and her group of friends that he felt neglected. He wanted to be noticed so he decided that in order to do that he needed to become stronger. This is when he got the idea that he would leave Nibelheim and join SOLDIER to become like the great Sephiroth—a famous war hero of the time, known for his brilliance and unmatched strength. Shortly after that moment, Cloud invited Tifa out to the well in the middle of town during the night. He told her about his plans to leave town and join SOLDIER, much like all the other boys were doing at the time. He assured her that he would become a great SOLDIER like Sephiroth and that one day, in her time of need, he would be the one who save her… her hero.
Sometime during this general timeframe, Tifa and her friends decide to traverse Mt. Nibel—this is around the time that Tifa’s mother dies—and only a few of her group of friends end up going. However, Cloud is still there following a short distance behind them. Eventually, all that was left was Tifa and Cloud going up the mountain. Both of them miss a step and fall from the cliff; while Cloud isn’t nearly as hurt, Tifa is unconscious for nearly seven days.
Man 1: “Cloud! Why’d you bring Tifa to a place like this!”
Man 2: “What the hell’s the matter with you!?”
Man 1: “What if she dies!?”
Kid Cloud: Tifa was in a coma for seven days. We all thought she wouldn't make it. If only I could've saved her... I was so angry... Angry at myself for my weakness. Ever since then, I felt Tifa blamed me... I got out of control... I'd get into fights not even caring who it was. That was the first time I heard about Sephiroth. If I got strong like Sephiroth, then everyone might...
After this, Cloud leaves Nibelheim in hopes of joining SOLDIER, to get his strength… the strength that would allow Tifa to recognize him. This is where things become quite ridiculous in ridiculing Cloud’s character. I have seen this brought up thousands of times in arguments and each time I see it, I can’t help but wonder where people came up with it. Let me clarify right now, Cloud did not get rejected from SOLDIER. He never even attempted to try out for SOLDIER. Now, you may be wondering why he would do that. The answer is obvious: fear of failure. Cloud’s largest fear is being a failure. Above all else, he does not want to fail, whether it is to himself or to his companions around him. Throughout the entire game this reinforced by his reluctance to go through with many tasks when they are first set in front of him. His friends usually put him into the position of completing tasks; he does want to let them down and he does want to let himself. If he does not bother trying, he cannot fail at completing whatever objective is put in front of him. This very same thing applies here and the situation with SOLDIER. He did not even apply because he was afraid that he might fail—which would have let down both Tifa and himself. Instead, he joins Shinra as a simple foot soldier.
Cloud: “I was excited about it. Because that was my first mission after becoming First Class in SOLDIER. ...SOLDIER, First Class? ...SOLDIER? When did I enter SOLDIER? How did I join SOLDIER? Why... why can’t I remember? I’m... I’m...That's right... I didn't have to worry about it, because I was...”
There was nothing required to join Shinra’s military as a lowly Shinra MP; therefore, Cloud never had to worry about rejection. But at the same time, he was completely ashamed of himself. He had said he was leaving his hometown to become a member of SOLDIER like the Great Sephiroth, yet he ended up as a measly Shinra foot soldier.