H1B dropbox appointment - refused but no letter or slip


I have a bit of a situation here.

I am eligible for interview waiver because mine is an H1B transfer.
I had a Dropbox appointment in New Delhi on Sept 28th 2021. My employer did not provide an NIE. But I submitted all other documents and my passport on the day.

I checked CEAC a couple of days later and it said refused, with the long form text. So I assumed that my case is under adminstrative processing.

Today I received an email and a text message asking me to collect my passport. My passport does not have a stamp. To add to my frustration, i was not given a 221g slip or letter to justify on the day of the drop off or when I picked the passport. I’ve not received any email from the embassy or consulate.

Even after collecting the passport today, my CEAC status shows refused along with the long form text.

I have called US Travel Docs for further clarity and they confirmed administrative processing. But I don’t understand why my passport was returned if processing is ongoing. I’ve emailed US travel docs regarding this.

Have any of you faced a similar situation? I’d sincerely appreciate any information that any of you might have here.

Thanks in advance!

Most people without NIE have experienced this where there passport have been returned back but with 221g citing travel ban and PP10199. Once they submit NIE to the consulate via email and if it gets approved, the consulate will email the visa applicant to re-submit the passport for stamping.

How did you get drop box appointment? I am tracking it for a while and I do not see any appointment?