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I then produced a BTC address instead and used it to send the Bitcoin Cash there. This was obviously not a good idea
It was not.
BTC.com have told me that they have sent the BCH and that it is a confirmed transaction on the bloc, which makes sense to me.
There is nothing that BTC.com can do for you. They sent the BCH where you asked them to. They no longer have control over the bitcoins.
Kraken, on the other hand, have referred to an email that they sent out before I signed up with them, telling people not to send the BCH to a BTC address and that it is very resource intensive to recover lost crypto currencies, so they will not bother helping me and instead use the time to create an open post for this mistake to be prevented in the future.
That is unfortunate. Without help from Kraken, it will be impossible to access those BCH.
If it is a confirmed transaction, does that mean that Kraken has the BCH somewhere in their system on my address
Yes.
and is it legal for them to hold on to it?
That will depend on the laws in the jurisdiction.
This is a matter of 14.2 BCH and I cannot see how this can just be ignored by Kraken because of "resource intensive" work? Too bad, so sad?
Is there any possibility for me to get it back??
Only if you can convince Kraken to assist you.