UC claim denied - update

This is a follow-up to a post I created more than two weeks ago.

To recap: I'm building two business as my full time job, making no income from them yet (as I started back in August), and currently living off my savings.

I had applied for UC, got my gateway appointment, was successfully deemed gainfully self-employed, then my claimed got denied, citing that I failed my habitual residency test. Due to a technical issue, I wasn't able to obtain details on this initial justification, and had to re-apply to finally receive a letter with details, which are as follow:

• “You do not have a qualifying right to reside in Great Britain that allows you to access Universal Credit; and
• You are able to work which means you do not meet the hardship criteria set out in a recent legal case called ‘AT’”

For the first point; I'm an EU citizen with pre-settled status, and have not been out of the country for more than 2 months - on what other grounds would I not have a qualifying right to reside?

For the second point; what is the hardship criteria? Can't find much information on it and wasn't told about it when I initially applied. On the phone with them, I was told that it basically means that "I'm capable of working, and thus should be searching for work". But that just defeats the purpose of me starting my businesses xD.

I don't have enough hindsight on the matter - are these points valid? Should I submit a 'mandatory reconsideration'?