I'd ask for more clarity around the two non-reading level items again. Presumably, you have a legal right to request placement, and any appeals you'd make would have recourse to review of the criteria.
Maybe go in with Dude's line about prepping and say that you appreciate they are trying to minimize cheating. But then ask for clarifications about what the student score breakdown involves (weight of different grades?/behaviour?/Iowa Assessment score?), standardized tests, and the role of teacher judgment while allowing them the latitude to conceal the specific standardized test they use.
It all seems quite strange.
