So, the DMF is the ONLY link that the engine has to the transmission.... if that fails, not only is there no movement, but there is also no ATF pump working, so nothing works. At all. You could not possibly diagnose an M-unit failure if the DMF is stripped. I am not sure you are getting a proper diagnosis.
Yes, the splines eventually strip because people keep driving with a failing DMF.
Inside of an hour, I'd have that gearbox out and confirm what it sounds like happened.
And even if it DID need the whole unit (unlikely), there are used ones out there. They rarely ever fail.
Shame you are not closer, I'd nab that car and fix it (assuming it is not a neglected turd pile, LOL). 305k doesn't really scare me. I'd delete/tune it, of course.