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but i am bein monitored due to illegal download
I strongly believe someone is trying to pull a prank on you, perhaps someone you know. You could call your internet provider asking them if they did indeed send the letter to put your mind at ease.
why?
simple thing, Microsoft does not get any customer data from Steam. nobody does.
so this part of the story is nonsense.
the only reason your ISP would send you a letter like this is that they received a legal notice over a legal court from a copyright holder that a certain internet address compromised their copyright, either by downloading or uploading their property. your ISP check their stuff and they know it was you.
It is highly unlikely that would have received an ISP letter for downloading "a game." It's more likely that you would have received such a warning for downloading and redistributing A LOT of games or other content via a torrent or peer2peer service, or "researching" them as you put it. Regardless of whether or not you purchased doesn't preclude you from having downloaded a game through such a service before you purchased it.
Additionally, in most torrent/p2p clients when you download a game you are "seeding" it at the same time that you are downloading it, meaning that you are redistributing those downloads as well. Once a torrent is finished downloading, if you do not remove it from the client you will continue to seed it.
so no i am not distributing, i have it for myself, because i purchased it for myself, though i see why you might think that, since most people do that