You should have asked for the hotel in MAN, not the hotel in KRK. The first is covered under duty of care, the second is not.
Transport costs to MAN are probably not covered as it was a voluntary choice (perhaps not "common sense", but at least follows some sort of logic).
In my recent rebookings onto LH I have been given the free luggage allowance, so I would certainly ask again for that to be refunded.
Incidental costs like your transport in KRK will never be covered, that's for travel insurance.