Visa status “refused” but passports are still with Embassy/consulate

Hello , here is my timeline

Dropbox appointment for me and wife on May 15th
Here is timeline

May 15 - document submitted
May 18 - status changed to “application received”
May 19 - case status updated date changed

Passport tracking shown - “delivered to post”

May 24 - status changed to “refused” for both of us

Where as passport tracking shows - “no status update available”

On CGI Federal system (the appointment portal) it shows -“ your passport is still with Embassy”

Any idea what is going on?

most likely you will receive the passports back with 221-g slip.
same happpens to us