you should try a different office location. Back after 9/11 I was denied also for similar BS reasons. I did not pursue it further (a regret of mine) and took it as fact while I watched a bunch of others around me get types in the bus and 73.
this time, I went in and basically told them there are NO jobs and I need to change careers. They told me WIA was an option provided i picked a job/training that was in need and I would accept that salary. Basically, they are not going to pay to train you if you have no plans of doing that profession. I hate to say it, but you have to tell them what they want to hear. As others stated, a little hoop jumping, but once you are in that is all that matters.