I will not be moving on in the hiring process, because "my resume was
too technical". ... This position was for a IT auditor.
How can I interpret the feedback the recruiter gave me, that my resume
was too technical?
I would interpret it as the fact that the hiring manager doesn't see many resumes from applicants that have your type of mostly-technical (perhaps even pretty much solely-technical?) background. And apparently your profile isn't quite what they are looking for in an Auditor.
Audit (even within IT) is far more about governance, procedures, processes, surveys, controls, best-practices, and compliance than about the more technical aspects of IT.
In future revisions, you may wish to tone down the technical aspects in favor of your background creating and following written processes.
Since you are attempting to change careers, you might wish to talk with someone who is already an Auditor. She/he could give you feedback as you edit your resume into a more Auditor-like form.