I just wanted to chime in with our experience. Our 2e DS didn't get into the gifted program here until grade 4. Part way through grade 1 he was tested but for a variety of reasons the scores didn't meet the criteria (the program starts in grade 1). We then had to retest in grade 3 and surprise, surprise they not met the criteria and then some. He transferred in and although it has only been a few months it seems to be a better fit.

Now although it would have been nice to have him start back in grade 1 I do think there are some good things that came out of it in the end. He was able to handle the transition much better, he definitely appreciates his strengths more after being in an average class, we managed to get some differentiation for him back in his old school, we focused a lot on his non-gifted e and made some headway there, etc. Obviously every situation is different but I strive to be a glass half full person and I'm trying to teach that to my kids. Quite frankly life can suck, there is much out of our control but we have to make the best of what we have. I'm not saying to give up or not pursue an appeal but in parallel I'd try to focus on the positive and view this as a bump in the road. I've really come to realize that this is going to be a long journey rather than a quick destination that we get to and everything is perfect. Even in the gifted program there are some things that could be improved but at least we're moving forward. Of course yymv. Best of luck.