I only clicked on 'Speed Optimizer' that one time to see if it helped in games which do not use the CPU 100% , when it became unstable I immediately set everything back to stock, I was not expecting permanent hardware damage
With a 13700K, no game is CPU-limited, and you cannot make the CPU utilization higher by overclocking. Games in general don't use more than six cores, sometimes eight, and the load is not very high (much lower than in fully multithreaded workload like Cinebench R23 for example). Nowadays, especially with an i7/i9, it makes little sense to overclock the CPU because they run almost at their limit by default, and any OC you make requires higher VCore which quickly makes the power consumption shoot into the sky and makes it uncoolable. So you concentrate more on things like the RAM timings, which are without any such downsides, provided that you test for stability.
Having said that, while it might not have been the wisest thing to attempt an OC, what you experienced then still shouldn't have happened.
But now I realize that relying on 'Auto' can be dangerous as it might suddenly set over 1.5v as has happened
Almost all users tend to keep VCore on Auto, so that is not inherently dangerous. Of course, once the CPU is overclocked, all bets are off. I would open a
ticket with MSI and tell them the weird things that went on with your board. I can't say for sure that this is all still under warranty, but that's the logical thing to do now, i'd say.