@WBYeats,
"B: Well, I wanted to take THAT course as well, but it was full.
A: Oh, sorry (for contributing to making the course full).
If the above conversation is natural English, what WOULD be an appropriate reply from B to say that B doesn't mind?"
If B is a male, he would be dumbfounded. Why on earth would you apologise for having been accepted into the course, though A missed out? B would think you were crazy…and (on second thoughts)…might tell you so!
And surely, not even a female (unless she's a bleeding heart type) would rush to reassure him, it's OK, please don't feel bad about it.
There's a Grand Canyon of difference between saying 'Oh, sorry' because he missed out; and 'Oh, sorry' as if it your fault!!!