That puzzles me.

The ERAD is a motor and a collection of clutches and gears etc....

My understanding is that if the motor is OK (which it sounds it is) then it can be rebuilt with new gears and clutches.

This is what was done to my car. The cost was about 3k iirc (will be detailed up thread).

Entire ERAD replacement is indeed about 9k but this is the electric motor and the mechanical bits.

It sounds to me that you only have mechanical failure.

Seeing as your dealer sound like patronising incompetent clowns I would definitely be looking to another dealer. Specifically ask the new dealer if they can do the rebuild and if not then why not.

It is the possible saving of over 5k so we'll worth persevering with.

Tempting fate here, but mine was rebuilt at 103k miles which is over 70k miles ago now.

Latest update:

Volvo have offered a 60% contribution and confirmed my 40% is only £1,200. I have declined and told them I expect a 100% contribution as it is a known fault on the T8 and has existed for many years. i also reminded them that I notified them of the issue within the warranty period and they said they would not check the engine management software without charging an additional £170 +VAT. Lookers are relaying my message to the manufacturer and I will let you all know how I get on.

Fingers crossed.