Exactly.  TWU discriminates against LGBT in that its covenant allows hetero students sexual intimacy within marriage while requiring that married LGBT remain celibate, based on their religious beliefs about marriage not the civil law.  If a student does not agree to embrace the covenant that is consistent with TWU's religious beliefs, then they won't be able to go to TWU law school.

And since LSUC believes admission to the legal profession should be based on merit alone, that's why they won't accredit the school.