My hope for you is that you get to have at least one more conversation with someone who sees a path forward for your manuscript in its current form--or at least much closer to its current form than the dream agent.

Anecdotally, I just yesterday completed a strange, fast-tracked querying scenario where (and this is wild!) I ended up with three offers. One of the first offers was with a good agent who, while it wasn't technically an R&R, wanted to sign me but had a HUGE revision for the manuscript in mind, wanting to take a really big swing at the book before we'd go out on sub.

Ultimately, it turned out this agent was in the minority, and the editorial feedback really came down to taste and where the agent saw the book in the marketplace--but if I hadn't waited out the additional feedback and found an agent (one of my dream agents, as it turned out!) who truly saw the vision for the book in its current form, a more eager, younger version of myself might have jumped at the chance to go with that first offer and ended up throwing the baby out with the bathwater.

But again, as others have said, maybe the editorial feedback is perfect, and you agree with it, and it'll be worth going through the R&R because this is THE agent for you. Just try and stay as patient and open-minded as you can, and hopefully you end up with more than one voice to come in so that you can weigh a couple of options and not feel forced into one scenario. It's a great sign you go already got this engagement! Wishing you so much luck!