Literally, the exact same thing happened to me. The same date, overnight, just like you described. I was charging using the surface port, however, not USB C. I've tried detaching the screen using the keyboard button and it turns green, then quickly changes to red - no dice. The usual tricks to reboot aren't working either (holding the power button for 20 seconds; holding the power and volume up buttons for 30 seconds). I'm supposed to lead a committee tomorrow morning with files on the device that haven't been backed up.
This has happened before but was usually reversible. I've had a bunch of other issues related to the display driver, GPU, charging, and am wondering if I made the wrong decision to purchase at this point.
EDIT: Did you install the updated Intel display driver to fix the display issues? I did. Also, it looks like there were some firmware and driver updates dated yesterday, 2/5/21 and I'm guessing my device installed them automatically overnight, grrrr... One of them is for UEFI - could this be causing the issue?
Link to 2/5/21 updates: https://support.microsoft.com/en-us/surface/surface-book-3-update-history-935a7b6b-2f6d-dbf9-b3ba-0ea61e187b2d