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Talked with the dealership and XIII yesterday after work.
Dealership: car does have a recall notice for the valve springs which has not been performed; however it's unlikely that the issue was caused by a completely failed valve spring so it's unlikely to be covered by Subaru. Subaru Mississauga is also so backed up with recall/service work that they are actually turning people away at this point and I would have to take the car back to the original dealership (Whitby).
XIII: pushed the car into the shop, up on the lift, and drained the oil; spun bearing appears to be the likely culprit. Definitely not covered under recall. Used engine ordered and should be installed in a couple of days. Comes with a 1 yr warranty including labour.
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