Earlier quoted context omitted.
Virtually all employment in the US is at will, meaning you are continually on "probation". The difference between a contractor and an FT is that the contractor is 1099'd, pays both halves of FICA taxes, and isn't provided health insurance; more importantly, when the employer is as overt about the issue as "not hiring you full time", there's no implied social contract or norm ensuring you'll even end up getting the jo…
Try looking at it a different way - assume, you will have a full time job at either of these prospective employers. Do you want the one that makes FT offers immediately, or the one that makes them only after testing new people out for 3 months?
Going to work for a company with employees of varying skill is no big deal; every company above a certain size has people who probably shouldn't have been hired. Going to work for a company with shady management, however, is a deal-breaker.