Thanks so much for the detailed and informative update. Interesting how they also want to re-seal the oil pan. I wonder what evidence made them think that would also be necessary.
As your friend mentioned, it could be worth getting a quote from another shop for the work, now that you know what needs to be done. Dealership labor rates are notoriously expensive.
Then again, the dealer might have a more robust "guarantee" for their work, ie they will fix it again for free if it starts leaking again. Don't quote me on that though. But, it could be worth looking into.
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Ultramaroon, thoughts?