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Okay, so the problem here is you already had an Epic account linked. It's literally impossible to play without one, so if you don't link one when you start playing on console, the game automatically creates and links a sort of ghost "nameless" account to hold all of your items.
You were supposed to follow the instructions here to upgrade your "nameless" account to a fully-functional Epic account.
By making a new Epic account separately on your own and then linking your Xbox to it, you overwrote the original account and everything on it, since automatic "nameless" accounts have a lower priority.
This is not exactly correct. It's true that Xbox Live account is merely a method to login into an Epic account that stores the data. Linking that Xbox Live to a different Epic account doesn't overwrite anything, just the original nameless account remains unlinked. What OP needs is to contact Epic support and provide information on what they did, the name of the Xbox account and support should be able to help restore access.