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Good luck trying to negotiate with them. I’ve been there and the issue is the law sides with them and is designed more around dead beats that can't pay their repair bill. Sadly at least where I live there is not much recourse for the customer to argue with the supposed professional on their diagnosis. They would pull out some troubleshooting 101 and say my trained professionals followed standard process and it brought us to this conclusion so we fixed that first. Step 2 still not working keep looking.
At the same time you don’t need to believe everything they say. Heavy flooding does sound like a stuck, broken, bent valve. With that issue and the car running for limited time there should have been a bunch of codes coming up and the CEL lit on the dash while you had the car before taking it to the shop.
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2000 Boxster S
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