This sounds crazy.
If you really had no ability and were a complete no hoper, they should have taken you aside much earlier and suggested a plan to get you up to speed, or suggested that you parted company before too much time and money had been wasted on either side.
To try to dump you now, so close to your final exams, is daft. If you are paying, then you are the customer and they are providing a service to you in the form of a training course. They work for you, not the other way round. For them to wait until now to suggest you should start the course again from the beginning - at your expense presumably - is ridiculous at this late stage.
If they are paying for you, they can stop the course, but again, why wait so long to do that.
I would have a meeting with their head of training. It sounds as if you need a week or two out of the classroom to go back over the books and the ground course notes, and then make sure you learn all the SOPs and flight profiles, preferably with a buddy. Then rejoin the course.
A type rating is hard work - you need to study about 12 hours a day. No time for television or socialising. Go over and over the notes and descriptions until you understand them. Practise the test questions over and over again. Draw out the flight profiles over and over again and write in all the speeds, pitch angles, etc. Walk out the profiles, circuits etc. in the garden or a field; speaking all the parameters, altitudes, speeds, configs and SOP phrases etc, to yourself. Do this for PF and PM roles.