Not enough information. For example, I don't know how deep your well is. I've been in your situation (I think) and everything worked out.

It could be that your well is ok (in that you can learn to live with it). I expect that you may have been trying to use more water than your well can provide. A deep well is like a water tank. You have a certain number of gallons in there. If you rapidly use a lot, then you have to wait for it to refill. It could take half a day, for example. If you have been doing things that require a lot of water, then maybe that's it. The house might be livable if you learn how to conserve water.

But, if that is the case then that should have showed up in the water test. They test how much water is going into the well. In order to pass, you need to have a certain number of gallons per minute.

Like I said- not enough info. But I expect that you have been using more gallons per minute than your well provides. I also suspect the test was correct. You have to learn to live with that, or have a deeper well drilled.

The cost of drilling sounds high. (Granted I'm a cheap, old man so all prices sound high). I had a well drilled several years ago, and one over a decade ago. So prices would be more now, but your quote seems way high.