Based on your situation, it seems there may have been some confusion regarding the eligibility criteria for non-local candidates in TS LAWCET. Generally, for state entrance exams like TS LAWCET, "non-local" candidates are those who are not residents of the state but have fulfilled specific residency requirements, such as living in the state for a certain number of years or completing a portion of their education there.

Since you are a native of Karnataka and currently live there, and you have only spent two years in Hyderabad for your PG studies from 2014-2016, you do not meet the residency requirements to be considered a "non-local" candidate for Telangana. The non-local category usually applies to those who have lived in Telangana for a specific duration, even if they are not native to the state.

As you are neither a local nor meet the residency criteria for non-local status in Telangana, it is likely that you are not eligible for TS LAWCET counseling. However, I recommend contacting the TS LAWCET authorities directly for clarification. They can provide specific guidance and confirm whether your rank allows you to participate in counseling under any special provisions or if there are any exceptions.