As alblack56 said, SimAI teams get to recruit at the end. They only recruit guys who are undecided.
Any Div-1 or Div-2 school, no matter how bad they are, will be preferred over any Div-3 school .. so a D- Prestige Div-2 is preferred over an A+ Div-3, and a D- Prestige Div-1 is preferred over an A+ Div-2. It has always been that way.
With pull downs, if you have not put in enough to get them pulled down (ie, he does not give you a backup message any more) then your effort is minimal.
In this case, it seems he gave you a message that you could recruit him (the assistant saying "you've got a great shot") ... but that just means he is open to accepting visits and offers from you. If he had been "Considering Us" for a status, then the Div-2 SimAI would not have put in effort on him. It seems that the Div-2 team put in more effort on the same turn he was open to you, but still undecided. Since their effort was higher than yours (weighted by the Difference in Div-2 prestige over Div-3 prestige), they won.
I understand that Div-3 does not really give you enough cash to really do a bunch of pulldowns, but that is always a possibility when waiting for a for a guy to drop, especially from Div-1 to Div-3. The turn he goes to Div-2, all the Div-2 SIMs see him .. if he is undecided and not considering a human, they can put in effort in the 2nd SIM recruiting period.