Can a Tier 2 or Level 2 Support engineer reset my Microsoft Cloud account?

I'm not sure about having a support engineer reset you Cloud Account, but
here is a resolved thread that has your same error code. Hope it helps!

About Microsoft Rewards status levels
Applies to: Microsoft account

• 
  Microsoft Rewards has two status tiers: Level 1 and Level 2. Earn and keep Level 2 status by reaching 500 Microsoft Rewards points each month - no matter how you earn points, they all count toward your status.
  
• 
  Level 2 members can earn five times more points on Bing.com, save up to 10% on rewards from Microsoft products and services, and get access to exclusive offers. Remember to check your Rewards
  page for current offers.
  

Level 100 is the max you can get every season.

Account level is your level from all previous seasons combined.

for example: if in season 3 you were level 15, in season 4 you were level 30, your account level would be 45.

Not only that, but a little bit more about the ranking system, every level requires more and more XP to get too, for example, from Level 1 to 2 is 500XP, but from 2 to 3 is 600XP.

The battle pass system is also a standalone entity in the sense that XP doesnt directly affect it, but leveling up does grant you battle stars, which are required to level up the battle pass tiers, (10 Battle Stars per Tier, 100 Tiers)

Hope this helped, have fun!

if you have any other questions relating to the tier and XP system, reply, and ill get back to you.

Are you 100% certain that it DOESN'T alter "any multiplayer data"? Sounds like the representative that you spoke with wasn't either, there's alot of weird glitches, etc. that are well documented here on this forum that make this too risky, unless you get
through to a "Tier 2" level "Engineer" who's had regular contact with BioWare on the issue, it's not worth ANY risk, in my opinion...

Talking to a level one rep won't help you if you can even be helped you need to request tier 2 support they will try to avoid doing that so ask for a supervisor until you get them to give you one.