Yes they can and they can bann you from applying... He won’t be able to stop you from withdrawing your application, but he is the one that is going to process the withdrawal, and when he does, he is gonna chrck the notes on file and probably bann you from applying next 5 years.
In my personal experience, dont play brave with Citizenship officers, they are well known for not having a very good sense of humor. If you fucked it up in the application, just wait for the questionaire and answer most accurate you can. If you withdraw your application, you get no citizenship and a 5 years ban as he already warned you. If you do the questionaire, you might have a good chance that he corrects what you messed up and accept your application, or he just needs enough paperwork for backup his refusal if its the case... anyways, you would be screwed...
Your best chance, just wait questionaire and hope for best.
My friend got banned exactly for the same reason, i stead of waiting for instructions, he withdraw his app, after the officer warned him... lol; he is back in mexico, because he couldnt get another work permit and he got banned 5 years from staying in canada.
But its up to you, If an officer told me that, personally I would not be even looking if he can do that or not, I will just go with what he says, at the end, remember that your application can be perfect, but it is up to the officer if he decides to grant citizenship or not, dont male the beast angry or try to cheat on it, wont go good for you, I can assure you, buddy