It sounds like your situation is being addressed; call centre employees can't make those kinds of decisions so it needs to be routed to somebody with authority. Nobody here on FT has a magic hotline to the CEO though so just be patient.

You might think that a cancelled award is a technicality, but AFAIK it has always worked that way - it simply disappears from your record rather than counting as two activities. (because IB+ has full fare awards that cost nothing to cancel, that would be a simple and free way to extend the life of your Avios - therefore that kind of loophole is not allowed)

There is relatively little sympathy at IB+ for those members who can't manage to earn or spend a single Avios within 3 years. But due to COVID you might get a special reprieve since it obviously wasn't your fault that the award was cancelled. Good luck.