What to do. Rejection and delays :(

OK thanks
He also said there's probably a place for me at the university if I want it

In that case all you can do is liaise with them and see if you can settle on a proposal that works for both of you.

I hope they accept but sometimes I feel like what if they don't. I still haven't heard from doctoral college about feedback and resubmitting so worried

Well if they don't you're in the same position that you are in now, albeit a few weeks/months down the line Again, a bit out of my wheelhouse but this is all a normal part of the proces so far as I'm aware.

If they don't then it's most likely that they aren't being transparent about what is the issue that they cannot say it truthfully?

No.
They're not going to waste their own time going back and forth if they genuinely have no interest. It's not a binary yes/no, you need to engage with them to see if there is a proposal or approach that suits you both. If there isn't you move on.
If you can't be bothered, just thank them for their time. Job done..

So I have received a revision email from doctoral school where they have outlined some revisions saying research needs to be narrowed down- more up to date literature- using social network analysis rather than technical aspects
They said the selectors (my supervisors) have agreed to advise on the revised proposal
They asked me to login to resubmit. However, the admissions team has already uploaded a rejection letter and the portal does not show that I can make a new application.
I'm quite worried because doctoral school and second supervisor have asked to revise and resubmit while admissions has uploaded rejection without amending the application bit.
@The_Lonely_Goatherd

You should email the Doctoral School to ask for advice on how to proceed

Thanks emailed them
BTW about revisions- do you have any tips on how to narrow down the research? Can a case study between 3 different dams be considered narrow? Or should I only stick to one?