Out of 1,923 unlawful possession cases investigated by ATF in 2010, about 26.5% were dropped because they weren’t actually prohibited people. Out of 4,184 cases declined by ATF, 11.5% of those were declined because they weren’t prohibited people (Source:
https://www.ncjrs.gov/pdffiles1/bjs/grants/239272.pdf)
If we are seeing those kinds of error rates that late in the process, I’d say you have a valid concern about erroneous denials.