Did Micheal escape or what?

He did.

In the end, after being trapped in the shelter under the kitchen, and set on fire, the camera showed a sweep of the whole burning inside of the house. When they got to the room Michael was trapped in, he wasn’t there. Neither was his body. A body can’t burn to ashes that fast. At one point Laurie shot through the floorboards when they were trying to fight him off. Maybe that’s how he escaped.

However he did it, if you stayed through the ending credits, you’d hear his heavy breathing at the very end. That is a huge hint of one thing: he escaped, and evil never dies.

Michael always escapes