This is awful but unfortunately not uncommon. I had my DLA to PIP done and the lies in the report were awful my husband couldn’t believe it as he done all the talking and she said I did but I had warned him the lie beforehand and he said they don’t, so the report was a shock. 
Thankfully thecthe manager who ignored the report and contacted my OT who sent a great report and I stayed on the same award. I am medically retired from a government job so I think that might have helped. What I must say is that there are amazing support groups online that help people with preparing for the assessment and appeals, whether it be advice or files that show how you should word your answers etc. So I would definitely join one of them and you shouldn’t pay for it either. This group on Facebook is very helpful with all stages of the process and many have success at MR thanks to the help. I do think that DLA/PIP should not be stopped while people are challenging the decision and maybe an assessment rate could be given which would mean people wouldn’t loose their car etc in the process until it was final due to the high numbers of overturned decisions.