Kids keep escalating when punished. How do I stop this?

My 5 and 3-year-old boys consistently ignore "no" and "stop," leading to a frustrating cycle. Repeated disobedience results in time-outs, which then trigger screaming and arguing. Escalating consequences, like taking toys away, only intensify the behavior. I will then make them go to their rooms where the arguing and rudeness persist. This cycle repeats endlessly, leaving me exhausted. How can I break this pattern and find effective discipline that actually works?