Not correct. You are eligible for generally all flight training which is part of the 141 curriculum, which should include the commercial solo part. If they can't figure that out find a new school.
Also the fact that they have such a gross conceptual error about MGIB tells me tat they don't know what they are doing with re. to the VA and they'll almost certainly screw up the complicated paperwork which gets you paid. Good luck ever getting that sorted out...