Does the escalation from the project in TCS mean the Termination from TCS?

No termination until and unless its a caused a big security issue, loss of confidential data and/or reputation issues

Have faced escalation. If it's genuine work on it. If it's not genuine. You are in toxic environment. Time for you silently work on a contingency plan. Look for a different project.

No. Have faced escalation several times. Still I am in same project

Will depend on the escalation type