I haven't been here long enough to know enough about everyone's back stories.. so I don't know if your breeder was excellent or not..
I have heard of breeder's falsifying paers though, ie using the same stud for more litters than the akc allows without dna testing, and therefore fudging paperwork, and having messes like this occur when someone gets suspicious and dna tests..
But, it could always be an oops over samples.
I would be so so so upset though if I had showed a dog to even part of a title and been told it doesn't count though. Wow.
I know you'll love your furbaby either way, and it isn't her fault, but I'd be pretty sketched out over the situation though.