Hi Sam, welcome to the board!
Running so low on oil that the pump sucks air will certainly cause major engine damage. Do you know for sure that the oil level was really very low when you had the problem? This would have made the oil pressure warning indicator come on, probably flashing on and off for a while first. (or could the shop have drained some to convince you?)
Is the engine really seized? This would mean that it won't turn if you try to start it or if you try to push start it.
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