Your ISP’s response doesn’t make a lot of sense. Keep filing complaints with who, so who will upgrade the lines? This problem is with your modem or your first hop outside of your house - these are under your ISP’s direct control and ownership.
You might try contacting them again, saying you’re experiencing packet loss near your house, and maybe ask for a higher tier tech as sometimes the first people you talk to aren’t too familiar with this type of issue.
This is incorrect 192.168 is a private IP handed out by router/gateway. Issue is between router and modem. So would check and make sure firewall is disabled on your router or open ports.
Is there a particular reason you want to do that. I see no signs you have any issues with ports or firewalls, and neither of those would cause this problem.
I have to agree with Tofflemire here. Ports being closed or firewall restricting things would not cause latency to be fine during the day and then rise during the evening hours.
Looking at the new WinMTR results there are still problems between your home device and the ISP’s network. So this still looks like a problem on the provider’s side. If it’s a cable internet provider, they may have issues with oversaturation between you and their central office during prime time, or there’s some other issue outside your home where the handoff is occurring.