Micromanagement at its peak

So My Team has two leads mapped due to some personal favours from Manager as they are comfortable here. In my team everyone has its own deliverables doesn't matter if he's an associate or team lead. Few days back they tried reaching out to everyone for bandwidth. Everyone denied due to limited bandwidth .

So they dropped an email copying manager that we'll have to give hourly updates to them everyday and they will also review our deliverables signoff.

This really sucks. If any higher level folk is reading this , could you please guide us on how can we deal with this situation. As now they will escalate there work on our head.