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What happens if you use a Handy Grapnel rope (transformed into an arrow) as a weapon? The spell states you can shoot it at an object; does that mean it just won't work if you shoot it at a creature?
I would treat it as a standard arrow, bolt, or similar piece of ammunition of whatever type you chose when you cast the spell.
Since it has struck a creature and not an object, the magic does not activate. Why ? Magic is finicky.