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The seller does not sign cancellation and release earnest money when my VA loan denied?

Escrow was opened 7/23/2020 with 45 day escrow, 21 days loan and appraisal contingency and 17 days inspection contingency. We have canceled in 8 days after escrow was opened while we were within our 21 days loan contingency allowance with a very good reason of job hour lost and loan Our broker on the same day notified the listing broker. On 7/31 our signed cancelation was forwarded to listing broker with an apology and full reason of cancelation. We were then contacted by listing broker accusing us of lying and multiple offer involvement and wanted us to provide the seller with verification of employment showing the hours lost and reason for loan cancelation. On 8/1 my broker provided both listing broker and escrow officer again with a cancelation copy and a copy of our VOE stating cut in my wife's hours to Covid. On 8/4 my broker again contacted the listing broker via email requesting respond to our cancelation. No respond was given. On 08/07 my broker again requested respond and email was sent to both escrow and listing broker. On 08/09 listing agent finally responded dispute existing a good faith by seller signed cancelation demanding our full deposit to be released to seller.

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