Disappointed with Refund Policy / Hacked Account Support

Earlier this week, I received an email stating that I had purchased an Xbox Live Gold Membership (Digital Code) for $24.99. I didn't do this, and nobody has access to my Xbox so I checked online. My account showed suspicious logins from a different state so I changed my password and went through their process to report the activity and secure my account again. After that, I decided to try and cancel the order or get a refund since this was a fraudulent purchase. I had 2 different calls, 1 with the store support and 1 with Xbox support. I completed the refund request as instructed, but was just given a generic decline stating,

"I'm following up on your refund request. We're really sorry we can't give you a refund.

Our refund policy doesn't allow refunds for digital game products that have been played or consumed. Thanks for understanding."

I didn't redeem the code. I have an auto-payment setup for Game Pass Ultimate so I wouldn't buy/use Xbox Live Gold. This leads to my two main points of frustration.

1. Xbox Live Gold is a digital product that basically would cost them nothing to refund me as a loyal Microsoft customer that was wronged. Giving me my $25 back would be a nice gesture and cost them nothing when you look at other situations like their own employee stealing $10 million in codes.

2. Why is there zero attempt to do anything about it or any kind of effort towards punishing these people? Microsoft knows the login of the offender. Microsoft should be able to see who redeemed the code so why not ban that account or punish them. If I didn't redeem it, the account that redeemed the code is either the hacker or somebody who purchased the code from an illegitimate source. They can clearly see that I didn't redeem it.

Have other people had similar experiences? Should Microsoft do more when people indicate they have had unauthorized access on their account. It's great that they have two-factor authentication and pins before purchases if you want, but that doesn't mean it is the customer's fault if somebody else is doing something illegal or breaking the terms of service. The refund request form does not even give an option for an unauthorized purchase by somebody you do not know or the ability to state that you were hacked. The customer service representative instructs you to choose "Other known adult," which is untrue to the circumstances and allows them to make it your fault since you are admitting to knowing who made the purchase.

:)