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While grant process in EU isn't fun, I think Levels has bit of an ego issues. He mentioned that if he had issues like that on eg X, he would see Elon himself in the replies. While he is great at converting his influencer status to income in his micro-SaaS projects, I don't think running ad-fueled browser games on state-sponsored super computer should be really aim of these grant programs.
I’ve seen this in practice with innovation subsidies: small startup has to spend a lot of time to go though all the hoops, taking up significant resources, to get modest compensation for actual innovative work. Larger business hires an external agency to do everything for them, to make silly proposals “convert website from jquery to react” as innovation, and gets thousands upon thousands of FTE-hours in subsidy compensation hours for it.