Runner I would be suspicious too, perhaps I am too cynical. The LA are worried and panicking. Whatever you do do not withdraw the appeal if you are not satisfied and in any case before you have a consent order.
EOTAS is any provision that is not provided in school/college. Medical needs tuition under s.19 of the Education Act 1996 can be a form of EOTAS, but EOTAS via an EHCP has a much wider scope and flexibility and would always be preferable. Tribunal won’t consider provision under s.19 of the Education Act 1996 adequate, not least because medical needs tuition provision is usually basic and rarely includes OT, SALT, MH etc. provision.
Some LAs, including yours, have medical needs tuition delivered via a registered provision, so could in theory be named in an EHCP. Although that wouldn’t be preferable as it wouldn’t meet all DD’s needs. However, I have just had a look at your LA’s medical needs tuition and they say they can’t name the provision in EHCPs (which isn’t actually true but works in your favour) and it isn’t long term provision. If I was you I would take screenshots and save the policy in case you need it at a later date as evidence, then if it conveniently disappears from the website you still have a copy. It’s also worth thinking about what DD’s primary need is - is it ASD or SEMH? because the policy states the provision isn’t normally appropriate where a neurodevelopmental disorder prevents attendance.
SENDIST won’t put a specific provider in F. For very good reasons. For example, if you have a specific tutor or OT written in F what if there’s a point where, for whatever reason, they couldn’t deliver the provision. You would have a period without provision and would need an emergency review to amend the EHCP - which the LA could refuse to hold and force you to wait for the AR or request reassessment of needs as there’s no right of appeal for emergency reviews.
As you are finding the preferred provider isn’t really independent. Despite what the LA would like, you can ask for direct payments, and a PB set out in J.
Sorry that was longer than I intended.
Cantonet even if they don’t want to use rest breaks would a smaller room help?