wow - when they first banned you did you receive an email in your inbox with any details? I'm surprised as MSFT would typically provide some information like a third-party claiming IP infringement or violation of content policies
Sounds like their appeals process is broken/bugged or they just don't staff it (and auto-close / auto-reject appeals).
And LinkedIn had probably put it in some "extra checks" list for the same reason, thus triggering the ID check.
Thing is they should either have an appeals process that works or they should require the ID verif at sign-up (so people discover they can't get by with a fake photo at the start before they invest in the platform and can remake their account). It does sound like fake photo might be against TOS but no one reads TOS?
Sounds like the current system sucks ass. Trust and Safety often underfunded / underthought though nothing surprising.