ExoAnalytic Solutions Systems Engineer interview questions

Process was fairly straight forward. Went through a recruiter screen and then a panel interview. The panel interview was quite disappointing. They seemed very positive about my resume, experience, and answers to questions. At the end I asked if they had any concerns and they said no concerns but it would be good for me to start working on some coding projects on the side. The rejection email comes and the feedback is that I need to "work on understanding the systems I test more and more coding skills". First off, how do they know more about the systems I work on than I do? I work on a SAP so they quite literally don't understand more than me, but sure. Second, if you wanted a Software Engineer why are you advertising for a Systems Engineer? Also, why lie to me in the interview and say that it's not a concern? Pathetic