If an approval with a contingency is not a commitment, why does the approval letter state a "commitment expiration" date?

The seller's agent sent us a mutual release with an addendum.  They are attempting to cancel the sale.

Can't the lender decline the loan at any time before the funds are actually dispersed for a variety of reasons?

The appraisal was completed and we received a third approval letter on 7/23/2019.  Everything was done as promptly as possible; the contract was signed on 7/13 and we completed our mortgage application and the lender ordered the appraisal on the same day.

A few notes:

1. The date in the contract, 7/22/2019, appears to be an error.  The contract was amended after negotiation, it was supposed to be 10 days following the day the contract was signed, but the amended contract was not actually signed until 7/13.  Note that the first part of the financing contingency states "within ten (10) days".

2. In Watson v. Gerace, 05-1296 (3rd Cir. 2006), it was found that a mortgage approval document with contingencies (in this case it was really a pre-approval, as it was contingent upon both credit review and appraisal) satisfied the financing contingency clause.

I am also not sure how an approval with a contingency on appraisal is not a "loan commitment" when the Ohio Revised Code specifically states that a "loan commitment" may have conditions?