Single Member LLC in California - nonprofit 501c3 application denied

Looking for advice on a legal issue in California. Here's what happened.

nonprofit 501c3 application denied. I've been dealing with this for about 13 months now and the situation isn't improving.

I have already consulted briefly with a lawyer but did not get a clear answer.

What are the risks if I pursue this? What's the likely timeline?

Honestly, i work in this industry and unfortunately this is very common. The good news is that when people actually push back with legal representation, companies usually settle ngl.