Engine cut off. Catalytic

[Mapko]

I've got a 2010 Golf gti mk6. Dsg. Regular service with VW Essendon fields.
Currently at 119,000km.

I've had the catalytic sensor solid light on my dash lit for about 2 days. The following day when I drove, it turned off and 20 mins into driving at 90km on the freeway the engine cuts out and lose complete power on acceleration, went into limb mode. Radio etc still working. (See the attached picture for the error in the manual, as it says it could be a blockage or sensor error which may cut the engine off)

A Red battery light is lit once the engine power is cut.
Pulled over and was unable to turned the vehicle back on. Sounded like a dead battery when trying to start.

Racv took it to a garage in Gisbourne which they have now had for a week without any real diagnose on the issue.
I explained the issue and they kept giving me uncertain answers which began with the high pressure fuel pump or valve spring could be the issue. After pushing them for answers they went on saying we haven't had time and the cam shaft might be seized or bearing failure, to head gasket issues.
They said they are looking for quotes on engine refurbs and never got quotes.
They seemed to be lying and trying to milk the situation as they say. I'm currently getting it towed to a Volkswagen dealer in deer park to check.
If anyone has any thoughts on the issue it would be much appreciated. I'm already out over $600 just moving the car around .

Update,
Vehicle currently at Kevin Denis VW, apparently camshaft has seized due to oil starvation from its last service with VW essendon fields. car has done only 5000km even though i had to top up oil after 3000km. Once I queried VW essendon fields about the issue they said they are no longer liable for anything done to the vehicle as its at an alternative VW dealer even after being advised to go to another VW dealer due to long 3 week wait.
Surely the engine oil should not be drained this quickly without having any low oil lights emitting?
Ive been now quoted $11.5k for a new motor?

Anyone know any other options i might have ??



Thank you.