You seem to have some microbiological confusions.
As i understand this is the (2015) official NZ spec for this product -
powdered infant formula.pdf 16.21KB
(Note that the entry for Bacillus cereus had a typo - "m" should be 102/g and "M" should have no entry at all)
(afaik "Staphylococci" would usually refer to S.aureus)
It is unclear why exactly the lot you refer has been rejected. And by whom. If above standard is the current one (??) IMO yr routine testing criterion is highly questionable.
The standard is somewhat oddly stated but should presumably dictate how you evaluate your product.
I anticipate that there is an official sampling/analysis procedure associated with the above standard. You need to use a similar procedure or one which is validated to give equivalent results.
PS - Note that if lab is initially using a 1:9 dilution of solid followed by traditional plating, this is not a logical methodology to demonstrate that counts are < 10 cfu/gram (or even lower).