When are LoRs evaluated?

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iDoc64

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I didn't see much info floating around on this but when are LoRs generally evaluated? I am just curious as to why I keep getting waitlists, even though I have been getting great feedback from my interviewers regarding my application/performance, and my stats are generally above the school's average. I suspect its my LoRs, but would i have gotten the interview in the first place of one of them was a red flag?
 
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