Suge Knight is well aware of the events that transpired behind prison walls concerning Erik Menendez — specifically, the factors that led the Parole Board to reject his request — and he believes the decision is unjust.

The Death Row Records founder — currently incarcerated in San Diego’s RJ Donovan Correctional Facility alongside the Menendez brothers — stated on “TMZ Live” Friday that the system is rigged … inmates are set up to fail, which explains why Erik was penalized for his previous infractions.

While Erik faced backlash for using a phone, making calls, dealing drugs, and even engaging in tax fraud … Suge emphasized that what truly hurts is how none of Erik’s positive rehabilitation efforts received proper recognition.

He reiterated that the prison environment is toxic, rife with mistreatment — and he suspects Lyle will face a similar fate, with parole being denied.

Want to hear Suge share everything candidly? Check out the full “TMZ Live” interview — it’s an experience you won’t want to miss!