I know that has to hurt, but she's actually making a lot of sense. The worst thing you could do would be to have a "false start" and be right back to Square One again. My wife originally said something very similar, adding that she didn't want to "give people false hope," which she then clarified as meaning our kids and her parents. She's being cautious, which is also sensible.
I also think you handled your response VERY well. The MC can help you navigate these sensitive waters.
Just THANK her for being honest with you, and see if you can address these things in the next MC session.
