Thanks, Peter.
I cannot find a sufficiently convincing argument to beat down the letter of the law. Primarily because of the imprecise wording.
Because of the vagueness, there is no letter of the law.
I can certainly see why people want to claim that rerolling failures adjusts the number of 1's in your result. ( I wonder if anyone's ever found lots of 1's in their second roll, and accepted the glitch?) It makes sense. But keeping the glitch while rerolling failures also makes sense.
However, adding the number of rerolled dice to the number of dice in your pool does not make sense. You're rerolling dice. Example: you roll ten dice, get three hits, and then reroll seven? You still have ten dice in your dice pool. You didn't roll seventeen dice (suddenly requiring nine of your seven dice to score 1's, for a glitch). Likewise, you didn't just make a seven-die test after spending the edge.