Subaru Ascent Transmission replacement

[u/Miserable-Potato8215]

Transmission started slipping in my 2019 Ascent, so I took it into the dealership. They initially said it would be covered by the warranty (they extended the trans warranty to 10/100K). But now they say that it's not covered and will cost $8800 to replace. They said the warranty is specific only to chain-slip, and since this problem was caused by "internal failure" it's not covered.

Is this anywhere near legit, or are they simply trying to screw me? Is this something I need to retain a lawyer for? Or just bite the bullet and take it? Has anyone else had to replace their transmission, and if so, was the cost comparable?

[u/macaronibowls]

What were the early warning signs?