youalreadyknowyes

Page 11 is for waivers for Criminal Grounds.
 
You stated that they were denied due to misrepresentaion.  Page 12 is for immigration fraud or misrepresentation:
 

 
For misrepresentation, a son or daughter is not a qualifying relative.

As others have pointed out, nope. You must have missed the bit earlier in the instructions where it tells you there are different qualifying relatives depending on what the waiver is being sought for. Let me extract that for you:
 
Part 5. Information About Your Qualifying Relatives
Provide information about your qualifying relative through whom you are claiming eligibility for a waiver. Pay close attention to which qualifying family relationship you must establish when applying for a waiver. The different waivers require different qualifying relationships. The required relationship is discussed in the Reasons for Inadmissibility section.
 
The section you quoted is for a waiver on grounds of criminal inadmissibility. I quoted for you and other people have highlighted the misrepresentation one - which is what you said the problem was - or were you mistaken on the reason your parents were denied?
 
 

Curious is this the info you read about it on uscis?
https://www.uscis.gov/sites/default/files/document/forms/i-601instr.pdf
It notes that there are different qualifying relatives for different types of inadmissibility. You stated the concern with your parents is misrepresentation?
2. Immigration Fraud or Misrepresentation
If you are inadmissible because you sought to procure an immigration benefit by fraud or misrepresented a material fact (INA section 212(a)(6)(C)(i)), you may seek a waiver by filing this application.
…
A. Your qualifying U.S. citizen, or lawful permanent resident relative (spouse or parent), or the K visa petitioner would experience extreme hardship if you were denied admission; or

Not sure if this is one of the waivers that can be filed in advance or you have to wait till interview/refused/told if waiver available as is the more usual course of things.

The answer is no they did not send it back. We got the passport with absolutely no issues and without any concerns or problems! The signature was left blank on the certificate.   

Some more reports from other forums:
 
 

I am going to update the previous reply so that it is representing some new changes in order to keep the picture all together for Charleston, SC locator 34 processing center. For the other applicants at other processing centers: please note that Charleston's processing center is one of the slowest processing centers, especially with the routine applications, so please be careful as you compare it to your own processing center at some other location or as you draw any conclusions.
 
Here are a few timelines with locator 34 in Charleston, SC and hopefully that will give you some idea of how long it is taking for approval at that location these days. I am providing the day of the application at USPS/library/county office and the day in which approval was indicated (if any). I am also including whether the application was expedited or routine service. All the approved applicants received their passports within 3 business days post approval date.

ROUTINE APPLICANTS:
Applicant 1)   Applicant applied on 4/2/21 at USPS --- Routine service --> approved 12 weeks later (June 25).
Applicant 2)  Applicant applied on 4/2/21 at USPS -- Routine Service --> approved 11 weeks later (June 18).
Applicant 3)  Applicant applied on 6/21/21 at a County/Library office -- Routine Service --> Approved  10 weeks and 5 days later, or approximately 11 weeks later on (September 4th).
Applicant 4)  Applicant applied on 6/29/21 at USPS -- Routine Service --> Approved 11 weeks + 2 days later on (September 16th). 
Applicant 5)  Applicant applied on 7/6/21 at USPS -- Routine Service -->  Application is still in process after 10 weeks+ 2 days (Should wait for 1 week).

EXPEDITED APPLICANTS:
Applicant 6)  Applicant applied on 6/10/21 at USPS -- Expedited Service --> Approved 4 weeks + 1 day later (July 9).
Applicant 7)  Applicant applied on 8/17/21 at USPS -- Expedited Service --> Application is still in process after 4 weeks + 2 days. (Application is expected to be approved, I am guessing, within 1 week, possibly today, based on the previous expedited approved service).
Applicant 8 ) Applicant applied on 8/21/21 at USPS -- Expedited service --> Application is still in process after 3 weeks + 5 days. (I am guessing approval will happen within the next 10 days).
Applicant 9) Applicant applied on 8/23/21 at USPS -- Expedited service --> Application is still in process after 3 weeks + 3 day. (I am guessing that this applicant should wait to the end of next week before any expectations of approval and hopefully they will be approved within that time frame).



I hope that answers your questions in regards to Charleston, SC's processing center.
 

Received my passport this morning. I got a new design! So happy 😁 also, they included my naturalization certificate. My stuff was sent via UPS. 
so, I guess that is it. 
Applied: 07/14 (routine)
in process: 07/29
contacted congressman: 09/01
09/07: upgraded to expedited 
09/07: approved and shipped 
09/09: received passport and certificate
 
application number started with 61
 

The passport itself was shipped from Arkansas. I believe the places the passport actually ships from/is produced in varies, so you might get the newer one.

This person on Reddit said he got the next-gen passport and posted pics, too. Other redditors are trying to get them to find out their locator number but apparently this person knows nothing about the process.
 
 
 
https://imgur.com/a/OwZZgMj/

My Swedish passport is just as valuable and valid as always, I'll keep using it for trips to Europe. Will be travelling with two passports from now on.

I have been collecting soooo many immigration related documents throughout the years and couldn't wait to get rid of them, they took up an insane amount of space. I got rid of every piece of "evidence of bonafide marriage" other than a few originals (like all the bank statements, we keep those for years). That alone made a huge difference, cut the pile with at least 3/4. 

I kept every single correspondence from USCIS, NVC and embassy (receipt notices, biometrics notices, approval notices, confirmation notices etc). Anything that seems "important", even if I'll never ever have any use for them again (it's also nice to keep as a memory, yes I'm that crazy). Will scan when I have the time and energy.

Just got my certificate back.
So the complete timeline for Routine (regular/standard) processing with standard delivery, applied for both book and card ($140 total + $35 USPS execution fee):
Locator begins with: 75
07/29/21: Applied at USPS Las Vegas Summerlin.
08/12/21: Status "In process".
08/13/21: Money order cashed.
08/24/21: Status "Approved".
08/26/21: Status "Shipped".
08/30/21: Passport book (52 pages) received. Shipped from Little Rock, Arkansas
09/01/21: Passport card received.
09/02/21: Naturalization certificate received.
 
Done!!!

It’s a type of transcript request. See the different types explained on this page. 
https://www.irs.gov/individuals/transcript-types-and-ways-to-order-them

There are two that verify you have paid—Tax Account Transcript and Record of Account Transcript. The first paragraph on that page has links to the various ways to get the transcript—online, mail, phone.