I suspect you already know that there’s no way to tell via the internet if you engine is damaged or not. But you can determine for yourself if the oil level on the dipstick is low or not. If the engine didn’t run low on oil and you heard a knocking, that could be a lot of things, most of them fairly innocuous or at least easy enough to fix… But if the crankcase oil level got so low the oil pump was sucking air for any length of time, that would probably mean the engine is toast. Which means it would have to be torn apart and rebuilt (if the visible inspectin showed that to be possible) , or what most owners would do who wanted to keep the car, the engine replaced with a junkyard engine or an engine sourced from a business that rebuilds junkyard engines. The other option is what Nevada above suggests, send this one to the auto recycler and buy another car. A used version of the same model, if you like it.
There’s some chance the engine remains perfectly good, and your shop has made a misdiagnosis. If you are unsure whether your current engine is toast or not, you could get a second opinion and ask for a wet vs dry compression test. With the compression data in hand, most experienced mechanics can determine the rest just by listening to the sound the engine makes. They might also want to do a pressure test of the cooling system.
In any event, 200 K is a pretty good number, proves you’ve been keeping up the routine maintenance with diligence. If you continue to drive your cars past the 100K mark, good idea to check the oil level once a week going forward.