You're perfectly right - this is because I've said, I can see paradox in the fact, entropy increases from the beginning of Universe due the expansion of Universe, which contradicts the gravity, which is attractive force, so it leads into collapse. You simply cannot have entropic process, which leads to spontaneous condensation of matter - such process would be always negentropic, instead.
Does it mean, entropic interpretation of gravity is wrong from AWT perspective? Not quite, if we consider vacuum as an interior of dense collapsar, which is condensing by its own gravity. From this moment the entropic expansion of Universe changes into negentropic process, which could be described by gravity.
But such negentropic condensation must be always followed by evaporation of matter into radiation - which is the true entropic process here. The space-time couldn't expand, if the collapsar forming our Universe wouldn't collapse, which is impossible, if it wouldn't a white hole, evaporating its matter to outside.
If we consider this entropic process, then the gravity becomes reversible, because the gravity near collapsar becomes ballanced by pressure of radiation. In accordance with this we can consider such collapsar as an undulating blob or giant quantum wave packet, which is in dynamic equillibrium of negentropic gravity and pressure of entropic radiation.
On the black hole model of Universe the holographic principle is based, but we can see, Verlinde's model leads logically to collapsar model or white model instead, thus removing the problem with reversibility of gravity. After all, one of features of quantum gravity is just to make gravity as reversible, as most of common quantum phenomena.