Essentially, each of the judges wanted to eliminate a different person and wouldn't budge. So, no majority. What Nigel told each of them was the reason that the judge against them wanted to eliminate them. Jose - not learning enough outside of his expertise. Robert - not growing. Billy - not dancing when he has the option. The one's who wanted to keep Billy probably felt strongly that he is growing the most of the bottom 3. I also think that 2 of the 3 judges believe that Robert is growing, too. and I think the one's who didn't want to drop Jose likely felt strongly that either Billy or Robert should go before Jose.
It's weird, but I kind get it. If I was a judge, I'd want to get rid of Jose but would be concerned that some would say that it's unfair for Billy to stay when he didn't dance. In the past, there have been dancers who couldn't perform on the night of the performance show, but were able to dance for their lives - I'm pretty sure that these dancers are usually eliminated, as well. And, of course, there have been some where the dancer just couldn't continue who are always eliminated. What do you do with a dancer who didn't at least do a solo on elimination night?