It is hard to answer your question. Basically, it looks like you did not have an attorney help with your COS.. Perhaps now you understand the importance of having a professional attorney do the papers. He/she will help with understanding your options.
FORMER IMMIGRATION LAW PROFESSOR -- LEGAL DISCLAIMER: This answer is offered for informational purposes only. It does not constitute an attorney-client relationship.
USCIS will certainly see the prior denial. Consult with an experienced immigration attorney to refile your application.
The answer provided here is general in nature and does not take into account other factors that may need to be reviewed for a more precise answer. You should consult with an immigration attorney before taking any action. The answer here is not intended to create an attorney-client relationship.
The USCIS has likely denied many changes of status from B to E visa status. It is unclear how you were disqualified. However, you cannot file for another change of status during this stay in the U. S.
I strongly recommend an appointment or teleconference with a competent and experienced immigration attorney. You may have other options depending upon a careful review of the facts.
This is general information, not legal advice, and does not create an attorney client relationship.