College changed my grade level on my FAFSA. Why?

I’ve applied to 7 colleges. I earned my A.A. through my 2 yr community college (I have 62 credits), and so am transferring to a 4 yr to earn my B.A. I was accepted to all 7 within the week after I applied.
I filed my 2017-2018 FAFSA at end of DEC 2016 and it was processed the next day. This week (mid FEB) I received an email from FAFSA saying my FAFSA had been corrected by “college”. Which of the 7 did it I don’t know.
I looked at my FAFSA report and compared the one I submitted and the corrected one a “college” submitted and the only change was to my Grade Level. I had answered “3rd year undergraduate/junior”; it’s been changed to “1st year undergraduate and has attended college before”. Why would a college consider me Ist year undergrad/change my grade level considering I have an A.A.?
Thanks.

Did you earn the AA while still in high school?

No, I earned it over two years at my community college, after high school.

Often transfers are classified as first year students in the initial federal aid package. This is because your transfer credits haven’t been finalized. Once you are enrolled and that evaluation is completed, you will be re-classified appropriately for federal financial aid. If all of your credits transfer and you are given junior status, you will be able to borrow the junior-level student loans.

Thank you.