Whilst it may be slightly disheartening, I’d try to rationalise that the firm clearly see some key potential in you - and don’t want to entirely throw that away.
I do think it’s possible to get a place through other’s dropping out. If other applicants have applied to firms with VS’s at the same time and they have their preferred firm come in later then there’s scope for you to get that place!
For example, I know that this year Jones Day, WFW, Shearman and W&C are all in the same period, so people applying to those firms might have to weight their options.
Hope this helps! Don’t let your head go down!