Update...
After calling again, I was approved for the 40k HH (no 24 month language link, we'll see if I end up getting the points). I actually fudged up my social when I applied, hence the instant denial
With my SO it might be a "Citi reps don't know what they are doing" kind of situation. Called and was was told reason for denial was "credit factors" that I would see on the letter. Would not discuss it and could not be reconsidered. Seems to not match what the first rep said, but still very surprising. First ever denial.
I guess the DP so far is that it is business as usual at Citi. Phew...