No need to be dramatic now.
It is hard, you feel betrayed, deceived, sick of it... You can be angry.
At the same time, you might still want the same as they want - for them to find a good way to live their lifes. You might want to turn it into a lesson that coming clear is easier than expected. You might want to understand how it got so far.
You don't have to come with a definite plan now. Ask them what exactly the situation is. Ask them what they suggest now. Ask what they want, what they fear, what they learnt from it. See whether they apologize and what they have to say.
And than calmly decide, what makes sense from your point of view, what is acceptable, what are your conditions. You can even take a bit of time to think about it. And you might come with better suggestion than theirs will be.
I failed my first attempt for final exams at uni, had to take half a year off, redo my thesis, resit the final exams and start my master a year later.
No significant costs were involved (mostly free education and I was living at home).
My parents were mad (I definitely hadn't done everything in my power to pass, partially because I just hadn't known why, partially because I prioritised fun over thesis in the summer).
They wanted to blame my boyfriend, but he was practically the only one able to help me in any meaningful way, being several years older in very similar field (and he was already helping).
I'd expected I lost their support and should get a job. They said that they don't see it as either useful (with regards of me finishing my education) or as a punishment ( I was able to get a job I'd enjoyed at that moment, but without much in terms of career available). Their suggestion was - for me to create a specific battle plan, no part time job, fully prioritise my main degree. I paid from my savings for an "external student" enrollment, so I was able to go to the university daily and take some subjects for my master.
Looking back, it was the best possible thing to do. It wasn't a punishment, it was more important - it put me back to the rails.
I'm not saying your case is the same, I'm saying you are the more experienced adult here, and you might want to look beyond immediate punishment (I'd say you do it already, just wanted to balance the "stop all support immediately" attitude many posts hold).