Bummer, sorry to hear that. Their policy is more important than your patronage.

I started avoiding AirBnb like the plague about 5 years ago over a similar situation (not nearly as severe or costly). Similar in that their "policy" trumped everything else. So I've exclusively stayed at hotels since, and love not having to do the laundry on my way out.

Charge it back on your credit card. Let your credit card company handle the dispute with them.

Or escalate, escalate, escalate, calling and emailing every day and asking for a manager and their manager until you get what you want. Be polite but firm and keep the pressure on until they give up.

Personally I'd just charge it back. Businesses like that run on screwing over everyday customers as a matter of course. You mean nothing to them but the chargeback will be a small hit to them.