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Been there. Don’t count on the dealer co operating. You may get lucky however they usually try to blame it on you. If you have to approach it via the legal system it will be a very long time before things get sorted out in either direction. If the dealer isn't co operative. You either have to pay out of pocket or sell it as is. If you DO end up replacing the engine search out an independent shop that specializes in Subaru engines. Here in the US the cost is around 8k. With a new short block, heads redone and everything tight.
If you have the skills you can do the labor yourself however most don’t
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