I really hate to say this: There's no "Microsoft support" and no "Escalation team". Microsoft employees do not provide support to individual customers. I don't know who you were talking to, but it wasn't Microsoft.
More than a billion people use Microsoft software. There's not a chance that Microsoft can deal with even a small fraction of that number of phone calls, so they stopped doing that years ago.
Microsoft hires a limited number of outside contractors for people who insist on talking with someone, but these are not Microsoft employees and Microsoft is not responsible for what they tell you.
For now: You should stop using your computer and show it to a professional technician. There may yet be a way to retrieve your files.
For the future: You'll never lose files that were backed up.