DoD clearance possible after CIA SCI denial

Hi, I would really appreciate some thoughts on this situation. I had an active TS/SCI clearance through the DoD and had a job offer with the CIA. In Dec 2021 the CIA denied me SCI (over a year ago) and my local security office removed me from access. Since then my security office has been going back and forth with the DoD CAF to figure out how to give me access back. I’m being told that the only way they can start the process to reconsider my package (because it was pulled at the local level but they don’t have authorization to undo their decision) is for me to withdraw my CIA appeal. But, if I do that, I will have an SCI denial on my record. Do people get TS/SCI even if they were denied in the past?

Reasons for CIA denial: I did 14, 1 hour interviews with foreign nationals with NO SUBSEQUENT contact 8 years, 6 and 5 years ago as part of my dissertation research. These were all reported on both the DoD and CIA SF86.
Security issues: told a friend living on the other side of the country that I had another unnamed friend who was leaving the CIA. I was assigned as part of my job while deployed to Iraq in 2008 to work with British SAS on targeting HVTs and I explained to the polygrapher that I had verified with my boss that we had permission to share info with them, but somehow this was ignored by the adjudicator. Finally, the only actual thing that relates to security is that in 2007 I accidentally brought a classified doc home and then I brought it back and told my boss right away. They didn’t write me up for this and it is not a security violation on my record. I report it anyway and both the DoD and CIA knew this.

I’m concerned that I will never have a clearance again if I always have an SCI denial on my record. I had held a clearance for 10 years with no problems prior to the CIA investigation. I’ve never done drugs, never had any financial issues, no issues with the law, but how do I ever hold a clearance with an SCI denial on my record? I’m concerned that if I follow my security office’s advice and pull the appeal then the DoD CAF will just revoke my clearance because of the denial.

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