Not to turn this into another DO vs MD thread but there a couple things that need to be qualified by the DO vs MD are functionally equivalent and practice the same. The main point is the DO vs MD discussion is much much more than saying they are "functionally equivalent" and that simplifying it like this can be rather misleading.
a) It is rather clear there are a number of specialities that DO's either will have a much harder time matching into than MDs or that will simply be off limits.
b) Perhaps even more importantly there is a difference in the quality and tier of residency programs that MD's have access to that DO's simply won't, for pretty much all fields even primary care. There are hoards of high end Internal Medicine programs for ex that wont even consider DOs.
c) Even for those programs that do consider DO's, DOs in a number of cases need to meet higher standards(ie higher Step 1 scores) than their MD counterparts to truly be competitive.
d) And this says nothing about the upcoming merger which will cut the number AOA residencies and clearly make it harder for DO's to match into the high end specialities than currently is. In fact with the AOA residencies getting cut and there being more and more DO applicants every year, its really not all that unreasonable to think in another 5-10 yrs there will be more DOs entirely shut out from residency.
e) 3rd year in terms of clinical rotations and clinical education is far different for DOs than MDs. One reason why you see the bias against DOs is because the clinical education they get just isnt at the level of MDs and this is something you will hear residents, attendings etc talk about on this site all the time.
Now I say all this completely agreeing the OP needs to really consider DO programs. There are still plenty of strong opportunities for DOs and for 99% of the borderline MD applicant population being a doctor is far far far superior to not being a doctor and there are hoards of high quality DO physicians everywhere. But the DO vs MD discussion is one everybody has to have for themselves. I can completely see why a borderline candidate would want to take a DO spot without hesitation if they cant get into an MD program. I can also see why a borderline MD applicant wants to give themselves more than 1 cycle before opting for the DO route and doing everything in their power to try to get into an MD program, even if it means taking risks and a couple years along the way. Its a discussion only the OP can determine for themselves; I tend to simply try and point out the DO vs MD differences and encourage them to do their own research to decide if they want to concurrently apply to DO's rather than tell them you absolutely need to apply to DOs.
For the OP one course of action if you are gunning for the MD might be to try out an app cycle applying broadly and if you dont start hearing positive news by the fall either a) apply to DO programs b) look into the top end SMP programs(ie Cincy, Tufts etc). A strong showing in an SMP would do a ton to give you a final boost you might need for an MD program but its also a risky option. Just like the DO vs MD route, whether thats a risk to take is something only you can decide.