They're clearly trying to avoid paying out. Perhaps suggest to the warranty company that they get an independent engineer (that they appoint) to confirm the diagnosis?
Also, as it's a known problem I'd ask the dealer to ask Volvo for a contribution to the replacement cost.
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MY17 XC90 D5 Powerpulse Momentum: SENSUS, Osmium Grey, Blond, Walnut, Xenium, BLIS + CTA & RCM, Winter Plus, Fuel-fired Heater, Heated Rear Seats, Power Extensions, Tinted Windows
Coming soon: XC60 Ultimate Recharge MY24
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