What is happening to Virmach?

I have a few cheap VPS with Virmach, literally all of them sourced from offers here. As with all my VPS, I usually install the OS from ISO and encrypt the disk - because I do not know what happens to the disks when they are decommissioned - which requires me to have VNC access to unlock them.
2 months ago after rebooting the VPS I have in their node in the Netherlands I was unable to access VNC which led me to open a support ticket. 2 months later the issue has not been resolved.
It took them 2 weeks (!!!) to answer the initial ticket and when they do come back to me, they tell me the problem is that my server was hijacked by a hacker that encrypted my filesystem (!!!) I point out that I was the one encrypting the filesystem, and glad I did so if they be looking at my VM filesystem to solve the VNC problems in their infrastructure.
It took them 2 more weeks (!!!) to offer any substantial answer back and to tell me that this is a strange issue they had never seen before (!!??) and that "everything I have read on LUKS + Qemu/KVM, points to it being the cause of the issue" (??!!) I've never had any issue with the dozens of providers I've used over the years while always encrypting the filesystem when installing from ISO. I never had this issue happening in any other VPS I have with them at other locations. How can an encrypted file system cause issues with their VNC (never mind that it worked fine for months in that same VPS during periodic reboots and unlocking the disk through VNC).
They eventually suggested uploading my disk image to a location of my choice and rebuild the image. When I gave them the sftp details to upload the disk image they tell me they could try to rebuild the VM on another node to see if it solves the issue (why wasn't I offered this solution 2 months ago ???). I've accepted and asked them to also upload the disk image so I could close access to the server I was using for that end. They tell me they are "rebuilding the server now" and will also upload the disk image - that was 2 days ago!
This has been an unreal ordeal for 2 months, no access to the server or my data and just a staggering level of incompetence all around, from taking 2 weeks to answer critical emails, to them looking into the VM filesystem to solve a VNC issue, to telling me a hacker encrypted my filesystem, etc, etc.... Needless to say I've now lost all trust and hope in this provider, hence this post.
So, what the hell has happened to Virmach? Is this a way to push out their low-end user? I've seen others complain about VNC here, some saying it was resolved for them. It's just been an unreal experience for me.

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