Your flight was cancelled. And ...
For whatever reason, after a couple of phone calls and consultation with another (probably senior) agent it got sorted painlessly except that we ended up on the later flight instead of the earlier (of three originally scheduled).
... and everything was sorted out painlessly. I'm trying to understand the problem here or why you posted this, but I just can't. Flights are cancelled all the time. Airline employees misunderstand things all the time, like all humans. Your situation was sorted out "painlessly" and apparently within a reasonable amount of time.
Have I missed something?