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You need to have given your IELTS within 24 months(two years) of application submission date.

As an organization, they are fully justified to reject your application based on the information you provided. But this is a very minor issue, so it all comes down to decision of the individual officer that will review your application.

You can ask the place you gave your medical in if your report has been sent to IRCC or if they had any problems with it. IRCC portal has been bugging for a few days, so that could also be an issue. As you have your Passport Request you should now be cleared for the stamping.