OK so update: During my initial calls at the beginning of July, I got transferred a few times to someone that was a senior safety advisor who asked me a lot of questions and requested I send him pictures of all sides of each headphone and my ears. By this time my ears were mostly healed so I took pics of what I could but told him I was NOT putting the headphones back in so I could get the issue again to take pics just for them (he seemed okay with that). I didn't hear anything after I submitted the pictures so after a few weeks (end of July) I called them again to figure out what the deal was since I hadn't heard anything (and initially they had told me it'd take about a week after I submitted the pictures). They said they tried to call me back (but they didn't leave a message and I looked back at the calls on my phone and there was only one try that could've been them, so there wasn't multiple attempts) and they had more questions. So then I answered more questions (and very specific ones like dates when I had the reaction, what it felt like, how long it took to heal, if I have any other skin issues or conditions in general etc.). Then after answering those, they scheduled another call in a week saying they'd let me know if their safety team/engineers had any more questions, etc.
Long story short (too late): After about 3 calls each a week a part, I'm finally at the point where I have shipped back my headphones (they sent me a shipping label), I have sent them a copy of my receipt, and I'm waiting for them to process it to give me a refund. (I have another call scheduled for Thursday to give me an update on the status of my refund.)
It seems like this (questions, pictures) is what everyone else has gone through when contacting Apple. I did initially mention this forum and that others had this issue, but not sure if that was passed along to the 5 or 6 other people I ended up talking to as I got transferred around. Once I finally got a hold of someone and scheduled calls, the process seemed to go faster and they were pretty quick to accept my headphones back and give me a refund. I'm coming up on almost 2 months from my initial call to refund? It might have been quicker if I hadn't waited so long after I submitted pictures hoping they'd get back to me. So I suggest if anyone is going this route, to stay on top of them and schedule calls and call back if it's longer than they said it would be.
If you are experiencing this issue and it's still been within a year of you purchasing it, I strongly suggest calling Apple Support and going through this process to get a refund. Most of us have tried other things or different colors but most end with the same result and issues with our ears. As someone else recently said, maybe if enough of us call and complain they'll do something? But at the very least you'll get a refund?
In the meantime, I have purchased Airpods 2 and some rubber tips with hooks (since the whole reason I didn't buy these and bought the Beats initially was because they don't stay in my ears), and they've been sufficient.