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sounds like they are waiting for their first choice to make a decision on the offer
I wouldn’t say it’s completely out yet but it’s not looking good. Had almost an identical situation last month and ended up not getting an offer. Found out a little after 3 weeks from the callback
Patience, Grasshopper.
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A2 is right - they are working on their first choice and if it falls through they may come to you. Keep looking. If you really want the job, keep in touch with HR so they know you remain interested. From personal experience hiring for my firm, candidate 2or3 never looks as good when first choice candidate ultimately falls through. We usually start the search again.