Apple decided to permanently ban my Apple ID, see the post for what I did.
A credit card dispute has to be down within 90 days in US. To prove I am not a credit card fraud, I did not try to charge back Apple. I waited for about 4 months and called Apple support again.
I talked to a customer representative and my case was transferred multiple times until to a supervisor that has the privilege to submit a ticket for disputes over Apple ID lock.
The supervisor refuse to tell me the reason I am banned but was kind enough to agree to submit a ticket for further review. A callback was schedule several days later.
I was eventually notified that my ID is unlocked and no reason specified.
After several months of locking out my Apple ID, I have eventually regained by digital purchases. Apple did not apologize and it seems that I should instead appreciate Apple’s courtesy.
Remember to call Apple support once in a while. Apple has to address your issue otherwise or risk loosing indefinite amount of money paid to customer representatives.