The dealer is blowing smoke up your skirt!
If your service manager is worth a crap he will get the work approved. My bike had over 30,000 miles and had just been lowsided when I got my valve cover gasket replaced under warranty.
It must be either having a relationship with your dealer or their integrity or a combination of both. My local dealer has given me nothing but BS, lies and shoddy service and GTTP denials (never honored one claim) to the point where I had to go across town to another Dealer. I made sure to let the Service manager know of my experience with Dealer X and that having two kawasakis, I was wanting a dealer I could have a relationship with and trust to treat me FAIRLY. It was amazing how well that was received