Diamond has a policy that you have to confirm your deeded week something like 30 or 60 days in advance. Unfortunately it is part of their management contract and if you do not they have the right to rent out your unit. I don't think the cops will do anything. I doubt Diamond will do anything. You should document everything and consider legal action even if it is small claims but I am not sure how successful you will be. Make sure you confirm your usage for next year or this may happen again. I don't think you can confirm until after you have paid your 2020 MF but I am sure Diamond can confirm that for you.
If you own a former Gold Key resort, apparently this was an original rule written into the offering statement but it wasn't something that Gold Key ever enforced. When Diamond took over they decided to enforce the rule because it allowed them to take usage away from owners who failed to follow that rule. Diamond isn't unique with this rule (I could name one or two others) but it is certainly not a standard in the industry for fixed weeks.