What is not obvious is that there is more than one form of scabies. One is the more regular form that usually shows up as red dots around finger webbing and other places. Another is the animal version which many fewer people get, or at least most people don't ever have a reaction to it or develop immunity after a short time or ...

Not sure what you mean by "mites". What you describe and the treatment you were eventually given, seem to indicate that what you had was "scabies". Yes, these are tiny mites that burrow under the skin and lay eggs. It's the eggs hatching and the larvae burrowing out that causes the dreadful itching.  My mother-in-law ...