W-2 “freelance” in addition to W-2 “non-freelance” at the same time? In other words, you violated your employment agreement and got fired. The sad part is you still don’t quite understand the basics of W-2 and why you got fired in the first place.
Apparently you don’t either. In the US at will employment doesn’t mean you can’t have another job. There may be a clause in an employment agreement that says you agree to not work for any other company, but I’ve only seen this clause once in 10 jobs. Do you know what this clause is commonly called?
In Clerky, you will find it under the section “Outside Activities.” Custom contracts may have a different name for that clause. 1 out of 10? Maybe if you’re in Hollywood or some other highly specialized vertical. In tech, it will be 99 out of 100.