In the form that we filled for dispute , there is a space to key in the resolution needed by us.
We had asked for "no cost replacement of our device" and microsoft resolved it .
Regarding timeline , once our forms with all documentary evidence was received , it took the escalation team about a week to resolve .
For process pls go through the link
https://www.microsoft.com/en-us/legal/arbitration?SilentAuth=1&wa=wsignin1.0
A notice of dispute form has to be filled manually and sent with any documentary evidence supporting your case like the interactions with customer service , or anything that you deem fit so that the escalation team can review and take a call.
notice of dispute form is at this link
https://query.prod.cms.rt.microsoft.com/cms/api/am/binary/RW5Dpq
Thanks for the promp reply!
And did you return the old device? I have gifted the device to my brother outside US and it might be hard for us to send the old one back to them quickly.