Gotcha.
You submitted your AOS package July 2022, just a few weeks ago correct? This means theres no way an Officer looked at it and determined you don't qualify. You are getting stopped at the door by the 'gatekeepers' so to speak.
So first, go through your 864 with a fine tooth comb ensuring it is filled out correctly. Every line. Signature, dates, boxes checked, etc. If it's all good then the only reason I could see for it being rejected is the fact that the appraisal you sent is 90+ days old. Might be too outdated. Current usually means 30 days, maybe 60. 90+ might be too old.
You can send an updated appraisal or additional evidence like a realtors appraisal, zillow listing, etc but as stated you only get one shot to satisfy the RFE. If you choose to attempt assets only and it's rejected you will have to file again and pay the fees again and ensure you have a w2 based job or sponsor the second time around.