The process at the first two stages are the same. When you go before an ALJ it is evaluated differently. You can't/shouldn't take this process personally. The language in the denial is typical. They're not saying you're lying. You need to continue if you're unable to work.

The 5 Step Sequential Evaluation Process is always used. The Grid is at the end of Step 4.

I'm not sure why they would evaluate the Grid when they found you could perform your previous work? https://www.ssa.gov/oidap/Documents/...Evaluation.pdf

Get a copy of your CD and discuss with your attorney why you didn't meet a Listing.