Major update, and I think I hit the lottery with luck and that I need to go play in the casino's today.
My second letter came in today and I was like great, it is going to be another rejection and I will just ignore it along with any other letters that come through. So I opened it and to my surprise the letter was accepting my appeal and mentioned that any further issues will be taken into account that I already had an exception so that it will hold.
So out of curiosity, I called the number on the line and got someone and I asked to speak to the person that had their name on the letter for approval and was told that she wasnt in at the moment, so I decided, what the hell and explained that for some reason I submitted the same proof for both and the second one was approved and the first one was rejected.
To my surprise they looked at it, saw the first payment proof and also accepted the appeal. So I am good to go now and they sent an email approval as proof. Time to go to the casino!