I think it's really hard for any of us who do not know you to be able to tell you your chances. Also, it doesn't change anything except maybe to give you hope / dash your hopes depending on what people say...which could cause more damage than good depending on how this plays out.
I am sure that other things your school is taking into account is whatever happened your first semester with the 2.98, your general attitude in class, things like that. I'm not asking, just speculating that other factors even you may not know about may be playing a role. Which again is why it's really hard for anyone on here to guess with any accuracy at all.
It sounds as though it is worth appealing. As for involving a lawyer - as long as their dismissal is within their stated guidelines, that may just be throwing time and money away. Definitely outside of my scope, just my initial reaction.
.01 is incredibly frustrating, but cutoffs are cutoffs for a reason - they have to draw a line somewhere, and stick with it. Given you are so close and have various reasons, maybe they'll reverse the dismissal, who knows. That is a lot happening at once, especially your friends, I am sorry for your losses and I feel for you - good luck.