Residential home - under contract or not?

Location: Charlotte, North Carolina

Background

We submitted an offer on a home in Charlotte NC. The contract was for the list price, had both due diligence and escrow, was traditional mortgage, and has clear language and attach agreement for buyers agents fees. The seller came back to ask for more due diligence which we accommodated. Then they asked to remove a furniture inclusion. They then asked for a different form of payment for the due diligence, fine. Then they came back and said they didn't want to pay the buyers agent commission as listed in the contract. We said no, that is part of our offer. They then followed up and asked to shift more money from escrow to due diligence. Fine again. Submitted one final time with our agent clearly reaffirming we weren't changing the compensation terms, just the requested shift in escrow to due diligence.

Legal question in dispute

They then signed the contract but not the commission agreement addendum. They called our agent and said they signed but needed us to sign a different commission agreement because they didn't want ours.

-> Where are we terms wise? Are we under contract since they signed part of our offer? Are we not because they didn't sign all of it? Or are we under contract but in an immediate dispute?

-> If we are not under contract, should we consider this a failed situation and rescind our offer and look elsewhere.

-> If we should run from this should we get a formal termination to avoid any doubt?

Our agent is talking to her team and legal, but she has never experienced this so figured I'd ask the reddit community.

Thanks!

-.confused buyer