This is way beyond the scope of a DIY web site, but a big money maker for an attorney.
Did these attorneys tell you to have two I-485s pending under the same category?(I don't think that is possible). If so, that is why your case has confused USCIS officers. Did you not withdraw the first one? What makes the attorneys think the discretionary denial is incorrect?
https://www.uscis.gov/policy-manual/volume-7-part-a-chapter-5
3. Incarcerated Petitioners
"USCIS may waive the personal appearance of a U.S. citizen spouse petitioner who is incarcerated and unable to attend the adjustment of status interview. In these situations, the adjustment applicant must appear for an interview. An officer must take all the facts and evidence surrounding each case into consideration on a case-by-case basis when deciding whether to waive the U.S. citizen spouse petitioner’s appearance."
I think USCIS has complete discretion in this kind of case. Hopefully, you will get a clear decision soon.