I don't see any reason to believe the YC side were playing n-dimensional startup chess here.
Occam's razor suggests they simply didn't read the info, and were asking dumb shoot-from-the-hip technical questions.
Having said that, the 'Do you have any users and have you actually built an app with this?' questions were entirely apt, and Team Creo should have had better answers.
Basically the product is nowhere close to being developed enough for a funding round. It has potential, maybe, but so far it's a programming exercise, not a potential business.
The experience highlights the continuing mismatch between developer expectations and funder expectations.
1. Write lots of code
2. I have no idea what happens here
3. PROFIT!
If you haven't thought seriously about step 2 you're going to have a hard time with funding - or even just turning your code into a viable business.