I'd advise anyone in this situation to go with option 3) - find new employment and get the company to immediately pay out all that vacation time in cash possibl

I'd advise anyone in this situation to go with option 3) - find new employment and get the company to immediately pay out all that vacation time in cash possibly by booking your last three months with the company as solid vacation time. Once that's cleared up feel free to rejoin the company on option 2). Earned vacation time is earned - companies trying to reclaim it are acting dishonestly and need to be avoided at all costs.