UPDATE
I had an appointment with my counselor last week. An intern was allowed to be present during the meeting. My real counselor actually turned out to be very considerate and understanding. We set up another meeting in 2 weeks and she told me not to worry about being accepted to the program. She said she would take care it and overturn the decision made by the previous counselor since she is the head counselor that makes the final decisions. She mentioned that many counselors fail to take into consider one of the basic principles of the program - to meet the veterans skills, interests, and aptitudes. She informed me that nearly all of the new counselors are being trained simply to put disabled veterans into the first job they can find. She told me that she has sent several veterans to law school - one of whom she found employment for and then sent him to law school as well.
The intern, however, spent the entire time trying to refute everything my counselor was saying. She kept bringing up the fact that I have a bachelors degree and should have no problem finding work without the program. This intern spent the entire one-hour meeting trying to find every reason possible to deny me to the program. She seemed to have an obvious bias for some reason. I was surprised to hear my counselor actually defend me and tell her that placing me in the first job they could find would be below my skills, interests, and aptitude. Needless to say I requested that the intern not be present in any future meeting because she obviously does not have my best interest in mind.
However, it is a little suspicious that they seem to be dragging this on. Every time I mentioned that I was going to appeal they told me I had every right to, but then told me just to reapply instead, and now I still don't know what is going on or what to do really. I hope my counselor is being honest because she really did sound sincere in the face-to-face meeting, but I am still skeptical. I just hope this isn't wasting time when I should be appealing.