Not to interrupt the discussion but as a side comment, you call the thread
Holographic / entropic approaches - why SU(2)?
and if that is the topic, then it should be mentioned that Kowalski-Glikman's
holographic/entropic approach does not use LQG, but something closely related,
and it does not use SU(2).
It uses SO(4,1) BF theory.
Here's a thread about Kowalski-Glikman's February 2010 paper:
https://www.physicsforums.com/showthread.php?t=377015
A note on gravity, entropy, and BF topological field theory
Jerzy Kowalski-Glikman
(Submitted on 4 Feb 2010)
"In this note I argue that the expression for entropic force, used as a starting point in
Verlinde's derivation of Newton's law, can be deduced from first principles if one assumes that that the microscopic theory behind his construction is the topological
SO(4,1) BF theory coupled to particles."
What I mean to suggest is that while you are here asking "Why SU(2)?" it could be that the right way is not to concentrate on SU(2) but to use SO(4,1) beef.
Eventually SU(2) might turn up, as gaugefixing the cosmological constant breaks it down to SO(3,1) and then SU(2) appears as half or the square root of that.

But one wouldn't be starting with SU(2). Correct me if I'm way wrong, please.
==quote Jerzy K-G==
The plan of this note is as follows. In the next section I will recall the formulation of gravity as a constrained SO(4, 1) BF theory and its coupling to particles.
These technical results will be needed for the derivation
of Verlinde’s entropic force... (page 2)
...
III. ENTROPY AND GRAVITY FROM TOPOLOGICAL FIELD THEORY
In the previous section I argued that if one couples the SO(4,1) topological BF theory (which after gauge breaking down to SO(3,1) is equivalent to General Relativity) to point particles, then the theory forces the particles to be accompanied by semi-infinite Misner strings... (page 3)
...
Knowing this let us turn to deducing the form of entropic force acting on the particle. Suppose the test particle of mass m is at distance R from the mass M, which we can assume to be also point-like. Consider now, as in Verlinde’s argument, ...(page 4)
Let me now turn to the main argument of this paper. It is well known that there is entropy associated with
Misner string, see [19], [20], [21], and [22] where it is argued that the entropy of Misner string ... (page 4)...The entropy (3.2) adds to the original entropy of the screen, and since it is proportional to the test particle
displacement it leads to the emergence of the entropic force. Notice that since entropy increases when the test
particle moves towards the mass M this entropic force is attractive. Also when the test particle which was initially inside the screen moves outside, the entropy decreases...
Having (3.2) it is possible now to run the remaining part of the Verlinde’s argument essentially without modifications...(page 4)
IV. CONCLUSIONS AND OUTLOOK
In this note I argued that the form of entropic force being the starting form of the recent proposal of Verlinde
[6] to seek the origin of gravity in thermodynamics
can be understood if one assumes that the fundamental degrees of freedom behind it are described by the topological BF theory coupled to particle(s). The reason for this is that, as shown in [16] and discussed in [17], a particle carrying the charge...
==endquote==