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I'd be very happy with getting a free factory remanufactured engine from germany. It is the best you could have hoped for.
The biggest cause of engine failures people talk about is IMS (intermediate shaft) failure. Sounds like you did not experience that, but the net effects (blown engire) were just as bad. Anytime something bad like this happens be very grateful you are under warrantly and don't have to spend 12K on a re-mfg'd engine.
Also be happy they did not decide to rebuild your current junk engine
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