Apparently the issue is that the SMS check and the AMTA site check are inconclusive. My phone passes all the checks and tests but I have an ALDI sim meaning I'm on the Telstra network but my phone is unlocked from JB Hi-Fi. Afaik there is no way to confirm my phone will not be cut off but it might be because it's a sim on the Telstra network but not in a phone bought from Telstra directly.
Not to mention the E-waste and easily preventable deaths caused by not being able to dial emergency services. This is gross negligence at best and mass murder at worst.