Yes, I had 021 114 0699 on a 2degrees prepay, they gave me a new number on a new sim with the iPhone, I then had to purchase a Vodafone SIM, churn the number to it, then churn the number back to 2Degrees because 2degrees don't have a system to move the number from one sim to another!
Yes... Yes we do. Obviously from where I sit I have no clue why whoever you spoke to didn't know that, but they can literally take a SIM off the shelf and move your number to it. It takes less than a minute. Was this an actual 2degrees-branded store you were at or some other one like Dick Smith (I don't remember whether you said that in the beginning)?