Employer using my personal video recording focusing me to resign or they will terminate me without pay and spoil my reputation

Hello, I am 33 year old woman. I work in service based private company. In month of March my manager was changed, the first thing me did after my transfer under me was disintegration of my team and clients without my permission. From last 2-3 months he forced most of my team members to resign and reduced my team size to 2 from 10. As seen his intention I started applying for other job. I received an interview request from other company wants me to take interview in office hours. So I took my lunch break and came out side of office to take the interview. I used the company laptop to take the interview by login to my personal MS teams. While I was interviewing laptop shutdown and I was not able to start it again. I when and complaint about it to HR and IT. After couple of hours HR called in to office asking me to immediately resign, I asked for the reason, they said IT have recorded the interview given to other company and I have to resign or else they will terminate me without notice period and salary and spoil my reputation in local job market by not giving good recommendation. I told them that they have no right to take my video recording without my permission, I doesn't matter even if the laptop was provided by company but the conversation I was having on the call was personal and no harm to company reputation or data was done in it. Company has blocked all my company access including email, Ms teams, attendance system and took my work laptop on same day. I am standing strong and have not put my resignation email, going to office and sending email to hr from personal email asking them to mark my attendance for the day. I am affraid and worried that they will plant fake evidence on the laptop collected which I was using from last 14 months. And also worried that they will terminate me without may. I am the only earning member in family taking care of retired parents. Since this incident happened my health condition has been effected heavily, I am getting panic and anxiety attacks. I have always been obedient employee and in past never had complaints related to my work and integrity. I have always been loyal to my employer and spread positive word about company between my team. Asking them not to lose trust on my boss and company in worse times. Now they are using my good and emotional nature against me. Job market conditions are very bad and I am not able to get other job. Questions: Please read the case and tell me should I resign as they have video proof against me? What should I do if they terminate me without pay by using interview video against me? Should I send legal notice before resigning or them terminating me?