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I'd hate to be in your shoes, but Subaru has no obligation to help you out, since it's Toyota's problem. Toyota also has no legal reason to cover you either, but only through goodwill. If you have all maintenance records, maybe find a local attorney who specializes in auto warranty issues. Unlikely, but worth a call at least. But besides that, selling as is won't fetch you much. If I were you, I'd replace the whole engine with a new or lightly used engine instead of paying for a teardown.
I had this happen to me once with Chrysler/FCA/Stellantis/whatever-their-new-name-is-now... paid $4k out of pocket for a reman transmission.
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