cellphone upgrade and repair

I have been a Vodacom customer since the year 2000 and still using the same number , 2003 I converted my number into a contract and ever since then I have been renewing my contract every 24 months. 2018 May my contract was up for upgrade and I have been receiving calls since the 12th of may to let me know that I can upgrade. I would on a daily basis receive 2 to 3 calls from Vodacom telling me about the upgrade, on the 31st of may I eventually upgraded may contract after receiving a call from ********** 444 and received my handset on the 05.06.18, during my interaction with the upgrade consultant it was never mentioned that I have to visit the store to get my current sim card resized and that this phone only takes what they call nano cards, so upon receiving the phone I inserted my sim card which led to it being stucked inside the phone and I took the phone to Vodacom shop at jabulani mall Soweto to get assistance and I was told that they have to book it in which I had no problem about until today when I was told that I have to pay R2115.11 because I physically damaged the phone, the phone which I haven't use, I was told that my phone has been written off therefore I have to pay or else I will pay the contract for the next 24 months without a phone. I was told by the repair department at Vodacom that I have signed the contract therefore there is nothing they can do. I find this very disturbing and unfair because I did not physical damage the product and how can I physical damage something that I haven't even use on purpose