It is not true dear. That is just the GUI. Even today you may confirm for some candidates that they get call for initial medical and interview even after they have failed academic test. Give your best and be hopeful. There is a limit for NAVY to let the top so many number of people qualify while the online system is a bit rigid so it only says "better luck next time" or "Only shortlisted candidates" will be called. You can confirm your spot after 20-25 days by calling or visiting your respective center if you do not receive a sms from them. Best Wishes.