[Nabeshin]

They replied with this:
“The police is expected to cooperate in these situations and provide the hard copy police report.
We require that report to investigte this further.”

They're failing to realize that the police Is refusing to comply for all the right reasons - which Is no fault of your own.

Tell them to stop hassling you about an Incident that's beyond your control, and to contact the police directly. They can both sort It out between themselves.

Should I still screenshot the police reply?

Absolutely, I thought you already did.

Should I also threaten to contact my bank for a chargeback?

You could, instead, tell them you're gonna open a police report against Apple if they don't release your funds right away