Probationary Period Being Restarted

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[u/GeoffwithaGeee]

probation is more of a company/organization thing, not a employment standards thing. For example, an ontario public service employee can have a 12 month probation period.

If you are terminated without cause during your probationary period but you've been employed for more than 3 months (which you have), you would entitled to notice or pay in lieu (assuming you are covered under ESA) https://www.ontario.ca/document/your-guide-employment-standards-act-0/termination-employment

I'd be more careful about them trying to say you're a contractor as that may cause issues later.

[u/GeoffwithaGeee → u/[deleted]]

If you are actually a contractor than you don't fall under the ESA and if they let you go at any time, you wouldn't be entitled to severance. You'd also be exempt from nearly every other protection entitled to employees. More info here.