Could a short burn a device with high ESD protection
Consider the following points:


what is the component source you used? If you bought them on Alibaba or from another non-trusted source, then they must just be defective on arrival (DOA);
you say not much about your soldering techniques. You may have just overheated the chips during hot air soldering. Depending on the package type, I would solder chips manually with soldering iron with controlled temperature grounded to the soldering station. Remember: quality of tools 80% define success of your works. If you use bad, faulty, incorrect tools, or use tools improperly, you will get what you get.
you did not solder chips with hot air properly. Take magnifier and examine soldering. Take a pin and test soldering quality putting pin between chip pins (if not BGA). Or look for shortages on the pins. Using multimeter you already have proven that there's no shortages between power rails, but there could be between signals, and power rails and signals. There could be correct voltage while signals are still shorted. Visual inspection and checking with multimeter in voltrop (diode sign) mode required.



  PIC IC to be burnt while I am testing path connectivities (Using diode check in multimeter)?every pin to PIC IC I could only read the correct voltages at each pin)


Most probably not; and how do you know that read is correct for specific test points? You do not say that board is not detected - and it is logical issue rather than electrical (so far), and this logical issue may be caused by some electrical issue - either problem in circuit design, quality of soldering or faulty components.

And finally... did you supply correct power to the chips? Is your PickIt3+software operational?

Update:


  I bought the components from Mouser


Sounds good!


  using the diode check and when I measure resistance between Vdd and GND pins, it says 600 Ohms


It is not Ohms, it is Volts, a voltage drop. 600 is good value for semiconductor, if you would measure in another direction it usually should measure with higher value (1200 or infinity).


  I used temperature at 200 C


You must know melting temperature of solder you use, and the nominal soldering temperature to use with hot air for this solder type. You may find that you just did not solder the pins well. As I said - perform visual check and if you can resolder with soldering iron.


  would it say that the MCP chip is faulty? Or could it be the 12 MHz oscillator?


You can definitely say that chip is faulty only in two conditions


you replace the chip with new one, and board starts working;
you use advanced diagnostic device(s) (multimeter and scope) to prove that under defined conditions chip misbehaves.


Until that is done I would suspect quality of your work rather than chip fault.

And again, are you sure that circuit you designed is going to work at all? That you did not make mistake in circuit and did not make mistake on the board? This is also a good question, which you must make clear before anything else.