And during this I HAVE PUSHED THE RESET BUTTON OD THE SHIELD and the flashing process began!
At speed of 115200 baud, the serial monitor shows something like this:n⸮n⸮⸮ll⸮⸮c⸮⸮o⸮b⸮⸮⸮bsc⸮⸮⸮bbll⸮⸮n⸮o⸮⸮⸮nl⸮|b...
Where did you find that AiThinker bin file?
Also, do a screen capture of your Flash tool making sure to expand it so that the file names including path are fully visible.
I programm my Arduino Mega through ESP 07 following this https://github.com/jeelabs/esp-link could it be worth give it a try