When it comes to testing, usually it is done based on oil consumption, and the engine isn't taken apart. When you mentioned the things that were checked, that isn't standard procedure for testing. What the dealer needs to determine is if the engine is using more than 1 quart of oil in less than 1000 miles. That is what constitutes a warranty and oil wouldn't have been removed. It should have been at the full mark when it left if they were performing the test. Then, you would have been asked to drive the vehicle for 1000 miles and return.
I have to ask. Has the oil been changed within the manufacturer's recommendations, and do you have records?
Let me know.
Also, you mentioned the engine was rebuilt prior. Was the original engine overhauled or did they replace it?
Also, I attached the test procedures below for you to review. This is part of the oil consumption recall.
Let me know if this answers your questions.
See pics below
Images (Click to enlarge)
Saturday, March 26th, 2022 AT 4:13 PM