Is it possible to switch from Tier 1 (PSW) to Tier 1 (General) if points are met and for in-country application?

Thanks

If I would have been in your position...would be travelling back home. There does not look any way out here.
I know one of my friend who has already spent more than 1500 pounds for lawyer and also 11 months and still waiting for the psw visa as his initial case itself was not valid.

PBS (point based system) does not accept explanation. I am wondering who advised you that? If not your university international student advisor...then find out from him. Well he/she gave you above advice then I am sorry.

Received acknowledgement letter in approx. 5 days after sending application on 23rd Nov (Date on acknowledgement letter - 24Th)

Sad about the incident.
I may not be 100% exact...but I would like to suggest below:

Contact UKBA public enquiry number "0870 606 7766"...quote reference number...find where your passport is currently...go straight away to that office...explain them the situation and request for passport.

Bank statements issued within last 1 month are asked by home office....so if applying in mid december...bank statements issued on dec 3 are no way problem.

Cheers

Uni documents as mentioned by Wanderer in previous post is compulsary. Without which your visa is most likely to be rejected.
Most uni can issue this letter in one day...so you could wait for few days and apply along with this letter.