Do you think I got screwed, or is it just part of the hobby?

well...it's on YOU to pull the motor.

The next step is a lil tricky.... for do you trust them to disassemble it and tell you the truth about what's actually wrong with it?

You could do it yourself IF you know what to look for, OR be present upon them disassembling it, OR get they're approval/in writing that they will still warranty it after you have disassembled and inspected it.

JMO 168 -180 means something is wrong-leak down/chamber size variances, should not vary more than 5 psi in an average rebuild. and you should not see more 4-6% cold test and no more than 7-9 % cold test.

imo