got an email draft by my own email address, and change my micorsoft password

Question

Just today, I received an email saying my account had been hacked. The email was written as a draft—every time I delete it, it reappears and gets pinned to the top of my inbox.

The email also included my password, claimed they installed a virus on my computer, threatened me using my webcam, and demanded a bank transfer—the usual scam tactic.

I’m pretty sure this isn’t a phishing email, because the password was real, there were successful login attempts on my account, and my Minecraft username and skin were both changed.

I also got an email about another app being linked to my account—Thunderbird—and an email about signing in to Steam (though it didn’t go through).

Here’s what I’ve done so far:

Removed Thunderbird from my Microsoft account

Signed out of all devices through Microsoft

Switched to a passwordless account

Re-enabled two-step verification (it was on before, but got turned off after the breach)

Ran a full scan with Windows Defender—nothing came up.

So my real questions are: Is my computer actually infected with a virus? Or is this just part of the Microsoft account takeover? After everything I’ve done—am I safe now? Or is there more I should do? I’d really rather not wipe my PC unless there’s solid proof of malware.