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Dealer said that it sounded like a dry clutch fork. They are sending documents to Subaru corporate to approve the work to be covered under warranty - should be going in the shop this week. When asked them if it's ok to drive the car like that, they said it's fine.
P.s. after picking my car up that same day to fix the tail light condensation issue, the blower fan started making a slight noise. One thing after another but that's what warranties are for.
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