For some context here is what we see when reviewing suggested edits, as you may not be able to see the suggested edit queue yet:
There are options to "improve edit" and "reject and edit". This is also what the owner of the post will see when it has a pending suggested edit such as yours.
It looks a bit like the suggested edit was rejected as a "reject and edit". While some of your edits were incorporated there were more substantive changes that occurred. They could have simply improved your edit but they may not have felt your edit "did enough".
If they simply rejected your edit and then made the exact same edit then I would say that it was most definitely bad form.
There is some discussion across the network:
It is a difficult call between rejection and improving for reviewers but ultimately the owner of the question has the power of veto. If they dislike or otherwise do not want an edit then it is their prerogative to reject it.
Morally they possibly maybe should have accepted your edit, but are they allowed to reject and edit their question themselves? Yes, they are.