Thank you so much. I got in touch with INZ and seems it was just a systems issue.. Phew! I believe quite a few people also received this request
Info received;
We can confirm that your previous medicals are valid and that you do not have to provide new medicals for your RV21 application. The request for new medicals appear to have been made in error.
Currently, immigration officers are manually completing actions in the new system, and therefore your application will progress through despite the pending status. For some cases the status may not change in timely manner however the case officers will ensure that updated and correct information is captured in the system.