Got told I was "overqualified" for a role I actually wanted and didn't know how to respond to that

Recruiter said it kindly, almost like a compliment — "honestly, you're overqualified for this one." Sat with that for a full day before realizing it was a rejection wearing nicer clothes. I wanted the role for real reasons: smaller team, problem space I cared about, not a step up I was faking humility about. Didn't have a good answer in the moment beyond "I understand." Has anyone actually talked their way past that line, or is it just a wall once it's said out loud?