I found VW corporate moves at glacial speeds when I had my engine replaced (bad thrust bearing leading to crankshaft walk and an oil pan full of metal shavings).
They insisted at first, that they were going to rebuild the engine and at best, replace the top half of engine
Then they were adamant that they were sending only a new short block at most and rebuilding from there. That made no sense either as that's only half (or less) of the engine and not does not include the part(s) that was likely most damaged.
I had to fight them for about 3 weeks before they told me that they were sending a brand new long block. However, I got the sense that none of my efforts or things I said had any bearing on the outcome. I think they just had to literally jump through every single hoop of theirs first - even if their initial suggestions didn't make sense (downright alarming) and it was not difficult to figure out what needed to be done. They just had to go through every step of the process (from cheapest first of course).
And as much as people keep telling you that's what a warranty is for - you paid for brand new car and got damaged goods instead. Then they tell you they are going to replace damaged parts with reman parts... This is not a manufacturer defect, it was a major component that was accidentally damaged and not what a warranty should be for. I don't see how it is any different than if the lot boy drove the new car over a concrete piling and you didn't notice the damage until you got home, then they offer to fix it "under warranty" as the sole remedy - none of these people would be okay with paying full price for a brand new car in that situation.
OP, the process you're going through sounds similar to what I experienced. The logical outcome should be that you get a new car. They just need to go through all their steps. Best of luck!