I Will Not Buy From Xbox Until... - Refund Issue, Unplayable Game

I understand this a community thread and no one here is likely to be capable of helping me but I need to express this issue in hopes someone at Xbox might see it. I want Xbox to fix this issue I am having and I have gone through several channels. I've been rejected for a refund several times despite having a broken game. Allow me to explain...

I purchased a copy of Hogwarts Legacy Deluxe Edition in February of this year for my sister as a digital gift via my account. She received her code and redeemed it, but couldn't play the game until May as she only ones an Xbox One S. Fast forward to May when she downloads the game to fill her time as she has just given birth. However, after a few hours of play and a few days later an issue came up. Despite owning the deluxe edition which has both the Xbox Series X/S version and the Xbox One version included; the store said she no longer owned the game. We went through a series of steps with Xbox support chat including uninstalling and reinstalling the game, all the way through factory resetting the Xbox twice. None of these efforts solved the issue leaving our support tech at a loss. He then suggested buying a new copy of just the Xbox One version and refunding the old deluxe edition. So my sister did this and bought the Xbox One edition alone which worked fine.

I then pursued a refund on my account for the deluxe edition through the request refund option below the regular refund area because the code had been redeemed (this is where you fill out a form and send the request by email). I was rejected for this refund and then I sent another request explaining the issue further and how the game doesn't work, I was rejected again because the game had been played even though it doesn't work anymore. I then called Microsoft support to talk to a person who told me they had no method of refunding the game and that I should dispute the transaction.

I followed their advice and disputed the transaction through PayPal and despite offering clear evidence with screenshots of the purchased copy and how it does not display as purchased, I was rejected yet again. Suffice to say I am at my wits end with this as $112 has been effectively stolen from me because the game CANNOT BE PLAYED.

I have since cancelled my game pass and I will not purchase another title until this issue is solved, if it is never solved then I will buy competing consoles. I am hoping this post might gain some traction for Xbox to notice and help me. I have had Gamepass for years, bought hundreds of games, and I have owned every Xbox since the original. It has also been very difficult to talk to a real person over the phone during this process (within the refund department) and I am convinced that if I could explain this to a real person with some amount of power we could solve this problem.

All I wanted to do was buy my sister a game for her birthday and help make her pregnancy a little easier, and I have been screwed by Xbox.

:)