The admissions office is recommending waitlist and TEAM. And they also are saying that doing both does not mean a lower chance of getting TEAM.
This information is consistent with other resources on the internet like a Reddit thread.
However it is clear in this thread that your advice is exactly the opposite and choosing TEAM only.
This is not personal but this is just a question about data and accuracy:
What evidence do you have that shows that TEAM only is a better option than choosing both?
It would seem entirely unfair
( and also a broken admissions process) for someone to choose both only to have the TEAM spots fill up while they were waiting. If the answer is at the admissions process is broken and that it is just unfair then so be it. But making decisions based on data and not just what people think is usually a better course of action.