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It depends...how much oil, how much gas, how long it ran, how much load, etc. But, and it's a big but, if the engine isn't totally seized, it's hard to believe that contaminated oil is the culprit.
It sounds more like an interference problem. When they tried to turn the engine by hand they could have applied enough force to bend a rod if it was hydro-locked. It wouldn't be the first time someone has done that. It could also be that when they were starting it, the engine backfired and broke the starter nose and it's floating around in the bellhousing. That also wouldn't be a first.
The high oil level, combined with no signs of water, should have been their cue to check for a leaky injector in the first place. It's starting to sound as though you've got some votech graduates working on your car and they're just now getting their masters degree from hard knocks u.
If you can't get them to cough up the repair go for no less than half. That'll save you 50% and they don't lose anything but profit (probably.)
Beav
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