Laptop randomly reset itself?

Are you logging with a Microsoft Account (ie) Email address, or as a Local account, with your a name you made up?
If it's asking you to login as a New User, your User Profile may have become corrupted and it is creating a new profile.
If you are trying to login using a Microsoft Account, on another computer or smart phone, try to login to https://account.microsoft.com/ with your usual Microsoft Email address and password. If that fails, it will either send your security questions or send a code to another Email address or Smart Phone, which will allow you to change your password.
As for Activation, you can call Microsoft to Activate

it was asking me to sign in as "New User".

When Windows asked you to create a New User, you would choose whatever name and password you want. Type in the password you created.
Other then that, we cannot help you with your password as it is against Forum Rules as we don't know if you are someone that is not authorized to use this computer,

Looks like malware or a failing drive.

We are not sure what you are talking about? Did you leave the Password field blank?
Here are some other ideas https://techcommunity.microsoft.com/...for/m-p/998301