OP - first of all, do not despair! There are options in terms of how to sort this.
Firstly: your instructor. I think you DEFINITELY need to change instructors. You've lost trust and confidence in your instructor and it sounds like you need a fresh approach. I note you comment on your instructor prompting you a lot. While prompting is necessary certainly in the early days, I do believe some instructors "over-prompt" - the result being that the learner doesn't really build confidence. Better to explain why you need to do something, prompt a couple of times, and then allow the learner the opportunity to "take over responsibility" - otherwise what are you going to do at your test when you have no one to prompt you?!
I would suggest the following:
Seek out another instructor - and bear in mind it can take a few goes to find one you really connect with. You need one who will listen to your concerns, have patience, and EXPLAIN things properly - not just tell you what to do - but why. Find one who will explain how a clutch works - it really does help. You want one who will build your confidence.
If, after giving it a go a bit longer you are still struggling - then look at learning and passing your test in an automatic first. There are plenty suitable automatics around these days and they don't have to be expensive. An automatic will allow you to focus on actual driving - the roads, other traffic, junctions, roundabouts etc... and simplifies the process a bit.
Then, take your test and get your automatic licence and a nice automatic car. Then get out driving - by yourself - a lot. Build your confidence up. Go out driving in towns, countryside, motorway - the lot. Get comfortable driving and get confident with it.
Then, after a while, if you still wish to have a manual licence you can take a few lessons with a view to "upgrading" your licence to a manual - but it will be easier because you're not learning to drive - just learning how to manually operate the gears/clutch etc... - you're already comfortable with roads, other drivers, different driving conditions etc... that part is by then natural so it's less to worry about at one time.
But try a new instructor first - a fresh pair of eyes on the situation and a different approach may be all that is necessary.
You can do this!