I got my conditional approval today! Wow, that was quick!
Per my above post, my application was stuck with the RPO due to Adverse OK status on PCC. I met the RPO Mumbai last Friday and she was puzzled too with AD OK as it made no sense to her. It should be either Adverse or OK. She approved my PCC that day. I'm back in US - so will need to make another visit for the interview - so it looks like the home/finance ministries had already cleared me and I was waiting on the PCC mess.
BTW - I didn't get any email for conditional approval - surprised to see it though when I logged in today