I don’t see the publisher doing anything wrong.

You “froze” the contract instead of telling them you intended to stop all together and it also seems like you didn’t return their advance.

You are reading a lot of things that I didn't say.

The publisher didn't do anything "wrong". It was their suggestion to freeze it instead of cancel immediately. I didn't intend on giving up on the book even then. I didn't return the advance because I never received the advance.

It says the first half of the advance would be paid on approval of the first third of the book. It also says that the first third of the book was never submitted. So I don't think the advance was ever paid out.