I have an official update to the original question. This answer is per The District Commissioner:
Ineligible Volunteers (those rejected by BSA application background checks to become registered with BSA) are NOT allowed to be active in Troop or BSA activities.
This means the applicant is not allowed to attend weekend trips or to be an unregistered volunteer in any BSA activities. We were told that the applicant should follow the instructions per the rejection letter and to "sever all ties with the BSA" at this time. The only course of action for the rejected applicant is to file an appeal and plead their case.
We were told to expect in the near future that all volunteers will have to be registered with the BSA to participate in Troop activities. In fact, our Unit Commissioner Chairperson (volunteer head of District) (member of another Troop) mentioned that they attended Summer Camp with unregistered parents and the Disctrict Commissioner (paid head of District) was not happy at all upon hearing that.
As I mentioned before, joining and participating in the BSA is a voluntary membership for the adult applicant. It is not a right of the applicant to be able to join or bypass the decision of the BSA application process. As unsavory the language of the decision may be, it should now be considered FACT, that the BSA has the final determination on who is and can be registered and active with the BSA youth membership.
Thank you for all your input, opinions and attempts at answering this question.
At this point, this question is now considered solved: No means no.