I'm lucky to have a name that is (a) unusual and (b) short, so this sort of thing hasn't (so far) happened to me, but in the OP's case I'd have been much more annoyed about the non-retagging of the bags than anything else. Mistakes with names happen alarmingly regularly but the mistake with the bag tag is different.

Good that it was resolved and good that you got 40k avios though.