I feel like the appeals reviewers must have copy and paste answers they can use, and can’t really go off script. I don’t know that, but it feels like that.
To me, this looks like a sign for traffic along a roadway, not a trail marker for a dedicated bike/pedestrian trail. Have a look at this clarification:
From what I can see on Google Maps, it does appear that both rejections are correct. There does not appear to be a safe place to stand along this roadway, and the sign just appears to be a generic sign for traffic.