Thanks everyone. Yes it was rejected via email. I went to immigration in person. Highly recommend everyone to schedule online queue 3-4 weeks in advance. I was in and out in minutes. Still long commute though but could have been worse
KL is a tough consulate. Been there too. If your onward flight is 2 months later they'll request to see hotel bookings for the entire period. Not just 2 nights.
KL is a tough place to begin with. In the past they accepted 60 day hotel bookings which i usually did on Agoda (just book a hostel for 2$ a night in Chiang Mai, so its only like 120$ for 59 nights) - make sure you use one that offers free cancellation. Cancel it as soon as your visa is approved.