Wow, that is a scary feeling to lose progress! I am happy to hear you are getting somewhere now though
A couple years back, I felt that exact way you described - that I was putting way too much time into only technique (mostly alternate picking exercises), and not enough into actual music. I started thinking that I am missing out on so many little skills - bending, vibrato, whammy, creative slides, and just overall “feel” from playing something more musical.
I decided to devote 6 months solely to learning difficult songs (huge Petrucci fan so I worked on The Best of Times solo, Under a Glass Moon, Breaking All Illusions etc), and perform zero mindless exercises in this time.
While learning the solos became little mini exercises in themselves, they were at least musical and I added so much to my playing during this time.