What is Section 15 of the Microsoft Terms of Sale and why is my refund being denied because...

In-game items or codes once consumed can't be refunded

You buy an in-game item it's consumed immediately

If you didn't receive it you need to talk to the developer

Fyi if it's a Diablo 4 items read the description it explains how to access it

Diablo 4 items are connected to your battlenet account NOT ms account not sharable

Abusing the refund policy is never a good idea

That's how people GeT temporary suspended for marketplace theft fyi

It's not try before you buy

It's for.legitimate mistakes

Unfortunately due to the terms of sale, refunds are not available for digital purchases. That would be the reason if they denied your refund request.

https://www.microsoft.com/en-us/store/b/terms-of-sale Section 16.

And even since they do offer refunds, it's more likely out of good will since it doesn't follow said terms of sale.

Also, refunds are usually limited to once per year with this system.

Sorry.

If you have done the refund application here:
https://support.xbox.com/forms/request-refund and got denied then that's it, you can't get a refund.

According to the store policy, digital games are not available for refunds although they give them out in rare instances, they can still deny you based on the store policy:

https://www.microsoft.com/en-us/store/b/terms-of-sale Section 16.

There's nothing more to be done. Please be more careful what you buy in the future.

Technically the store's terms of sale in section 16 of this page
https://www.microsoft.com/en-us/store/b/terms-of-sale says that digital items are NOT available for refunds, although they do give you a chance for a refund and it seems you've taken that route.

Since they've denied your refund there's nothing else you can do, and we can't help on the forums.

If you want a refund on an item I would suggest asking for a refund before the 14 day period that you spoke of.

Sorry.

We're still working on resolving the issue with playback of some titles. Unfortunately, I don't have an ETA for resolution yet.

Since playback is an ongoing issue, I submitted a refund request due to my purchased or rented content not working correctly. I was denied my refund request, because all purchases and rentals of digital titles are final
and non-refundable.

P.S. You should warn others to proceed with caution when making purchases and rentals, and advise them to look at Microsoft Terms of Sale Section 16.