Summary. I will try to answer all the previous unanswered questions.
All the setup and configuration was done with the computer offline, in the order of presentation in the OP. I made sure that the MS Baseline IS a baseline by applying it first, followed by the Cloud Protectiion modification.
OSArmor has lots of restrictions applied, but they are mostly GUI based. This stops GUI based RATs hopefully. After realizing that the setup missed hardening, I re-did the whole configuration, added SysHardener as the second step, following the MS Baseline & Cloud Protection setup.'' SysHardener has all settings checkmarked except the uninstallation items. ( I think it can not re-install them )
Then I followed Andy's screenshots and also setup ConfigureDefender and FirewallHardening as directed.
Then I setup OSArmor and turned on all protections.
Then I setup Sysmon using this xml. It should delete any newly created executables.
<Sysmon schemaversion="4.90">
<!-- Capture all hashes -->
<HashAlgorithms>MD5,SHA256</HashAlgorithms>
<EventFiltering>
<!-- Block executable file creations -->
<FileBlockExecutable onmatch="include">
<TargetFilename condition="begin with">C:</TargetFilename>
</FileBlockExecutable>
</EventFiltering>
</Sysmon>
Andy was right, the test is equivalent to having 100 experienced hackers in the cafe. Not careful thinking on my part.
@oldschool, I have already tried Spynetgirl's hardening and WDAC programs. I will be doing further tests and will proabably use those.
The network environment was simple. I placed the test laptop directly connected to the modem+router via ethernet and set the DMZ to point to it.
network device exploits, abusing opened ports, DNS poisoning, MITM attacks, firewall exploits, abusing vulnerable protocols or system processes, etc
Andy has these nailed. The attack highly likely involved some of those. And the test machine was ill prepared. But then, these all have to do with the landing. The machine idealy should be able to defend itself after the landing took place. However, the setup was not prepared for the Evasion stage of the attack ( see Mitre Att&ck) where the attacker would be able to assess and find out what defenses are onboard and then work his way around them or deactivate them one after the other.
I am still set on my path to figure out what free tools can remedy the situation best. My fortifiedubuntu.org setup PDF has around 17 technical layers, plus some administrative ones, but that is not an accurate way to measure things accross different OS's. But, some of them can be migrated over to Windows. My lazy side is screaming that Windows is a for-pay environment and you have to pay your way to good security. We'll see, we'll see.