I guess it really is "beyond you". Try to open your mind a tiny bit and comprehend:
A paint flaw is a paint flaw. If a 1 inch flaw came from the factory, OR, it was caused by a rock or a parking lot ding, its a flaw, period.
The car don't care where it came from or how it originated. It just needs to be fixed. The owner wants to remedy the issue, and VW apparently tried 2X to satisfy him, but thats not good enough for him. He wants a whole brand new car. So, if the owner wants a whole new car from VW for a factory flaw, then why on earth would he settle just for a "fix" of a rock or parking lot ding from his insurance Co.?