H4 rejection

Hi,

I have appeared for Visa Interview on 1st Feb with my dependents(Wife and Kid).

Questions went on like petitioner, client, address and how long married.

The visa officer asked are we(Myself and my Wife) first cousins. Yes we are related prior to marriage and said Yes.

She told it needs additional processing and gave a 221 G white slip.

Later after 2 days got a mail stating as below

“You applied for a nonimmigrant visa at the U.S. Consulate General in Hyderabad. Your nonimmigrant visa application received every possible consideration consistent with U.S. immigration law; however, you did not qualify for visa issuance for marriage between first cousins in TX is a criminal offense.”

Can you please kindly advice on the below?.

Any idea on what will be the outcome for my(H1B) visa status, currently showing as administrative processing?.

Is there any possibility to reprocess for my dependents to take them to Texas?