I have never shared my email or password anywhere, I'm extremely cautious, yet they cracked the code without using 2fa. What is going on?
That can happen in plenty of ways, I'm afraid. For example: the information could have been stolen by malware, or involved in a data breach . And while you've never shared your email or password anywhere, as far as you know, studies consistently show that in very many successful hacks, the user was tricked into giving away the information. There is a saying in the cybersecurity community: Attackers don't hack their way in, they log in.
If your account was successfully attacked, it's gone. There's nothing that Microsoft can do about it. While you are spending time trying to find someone at Microsoft to talk to, the attacker could be ruining your good name and your good credit. You have to be concerned with what the attacker knows about you and how they can (mis)use that information. Protect your identity!