Should I drop out of IIM?

Sorry to hear about the challenges you are going through. It is fairly common, eps among those who also experience culture shock on top of the school issues and challenges.

I can tell you that in October (after starting my MBA in late August), I have contacted a number of schools about switching and asked if they would consider providing credits for my experience. They would not of course and there was no way for me to bail on my MBA and restart. It is really a one-way street unfortunately that does not allow U-turns or rather U-turns are allowed, but you just can't go down that street again really. Anyway, I was not happy with my classmates, classes, etc in October. I was perfectly happy, content, and enjoying myself by February.

I did have a classmate who got an offer while in business school to a VP position at Tmobile through a recruiter and he looked at the options and chose to pursue a pretty cool opportunity and being one of the youngest VP's at the company. He figured he was going where he could only hope to get after an MBA. I still remember the conversation - he was hesitating but he also dropped around October when I started having my October-blues.

I think the COVID flare up is unfortunate but nobody could know it and could have expected it. It is what it is and we can't control it. Will you really be missing out if you complete the year in the Bschool? I think if you have a position that you can switch to right now that is at/above your MBA level, then you may as well though I would argue "losing" a year at school would propel you further in the long run. The reality is that after asking people if MBA was worth it for them, I am yet to find someone who would say that it was not... perhaps you want to be a candidate for that position? Would like to interview you though only after you are done

I think in the long run the hard work during the MBA will be definitely challenging and you may question, why.... but it is designed to make you stronger and to find your breaking point (which you won't find where you expected it to be) and realize that you have a much greater potential than you imagined! It is like Navy Seal training - they are pushed to the impossible limit only to realize that the limit was imposed by their minds and they can go way beyond it which makes them do impossible things in the future!