Based on your timeline this far, it appears that you were grounded, but continued to fly anyway.
That on its own is enough to block your application.
What is irrelevant is that you believe that the grounding was not legal / legitimate. Once this element is removed, the fit and proper person issue ceases to exist (assuming the other points are not relevant), although, you have showed that you can’t follow the regulatory framework, because you chose to fly illegally.
The first step is to prove that your licence was removed illegally and the rest will flow from there, although not smoothly.
Let’s just say that Vicroads say that your car is unregistered and you choose to drive and pick up 10 unregistered fines from VicPol.
To fix this problem, you don’t take VicPol to the AAT because someone at Vicroads screwed up.