@Kb4568 - Part of the answer lies in your question and the other part lies in your ATIP notes. Since you are a current International Student, so that means you are on a Study Permit. And as far as I know, Canada does not allow concurrent Work Permit and Study Permit. How can you possibly be allowed to have a Full-Time Work Permit along with your Full-Time Study Permit? How do you expect that to work?
I know lot of succesful startup come out of college dorms, but IRCC won't give you a Work Permit for that as it's not allowed for international students as per IRCC. Hence your case is exceptional and accordigly it was sent to DN, which is an IRCC officer for Domestic Network. I am sure your lawyer would have explained it better to you. And it would have been nice if you had shared what part of your lawyer's recommendation you doubt and need clarity on. Otherwise we are all talking in the air.
Also I am not sure why you think lack of SUV WP is causing you not to have a source of income? As a full-time student on Study Permit you are not expected to earn full-time income. As far as your startup is concerned, you are lucky unlike most of us, as you are already inland and can easily incorporate your startup in your home country and continue working on your idea and generate sales in Canada. So not sure what are you cribbing about, as SUV WP only allows you to work for your own startup. And if you are already in Canada on Study Permit, you can easily work on your startup for 20-Hrs per week as allowed by the Study Permit and take as much salary as you want.
Also the only exception to concurrent Permits is IEC (International Experience Canada), which allows concurrent Study and Work Permit. I don't think you are under that category, hence your case has been referred for further opinion. And most likely you won't be eligible for SUV Work Permit till your Study Permit expires or you complete your Studies.