Suge Knight Says Erik Menendez Got a Raw Deal from Parole Board

Suge Knight knows A LOT about what went on behind prison walls with Erik Menendez -- the things that got the Parole Board to turn thumbs down -- and he thinks the decision is BS.

The Death Row Records founder -- who is locked up in San Diego's RJ Donovan Correctional Facility alongside the Menendez bros -- told "TMZ Live" Friday the game’s rigged ... inmates are set up to fail, so it’s no shock they shredded Erik over his past infractions.

While Erik got dragged for sneaking a phone, making calls, hustling drugs, and even dabbling in tax fraud ... Suge told us what really stings is how none of Erik’s positive rehabilitative efforts got a proper shout-out.

He doubled down, saying the prison vibe is pure poison, packed with mistreatment -- and he’s betting Lyle’s up next for the same smackdown, parole denied.