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Assuming the Champ PH48 filter has a bypass valve, even if somehow clogged or was blocked catastrophically, the bypass valve would hypothetically allow sufficient (unfiltered) oil to allow for sufficient engine lubrication. As far as the dealer blaming the filter, I can say, "My dog caused last week's heat wave." But simply saying that doesn't make it true.
Ahhh due respect, but wondering if you have read the entire thread? Champ/Rank has already admitted fault here, ie., the PH48 ecore was faulty.
As for the bypass, the spec'd oem ACDelco PF48 is a classic filter design having a separate metal dome end bypass and nitrile adbv and metal centertube. Otoh, the Champ PH48 Ecore uses a 'combo valve' design, a combined nitrile bypass and adbv at the thread end and an open nylon cage center tube. Since the OP hasn't reported being told exactly what issue caused the PH48 to fail so we don't know 'exactly' what the caused the problem. What is known is that the ecore combo valve bypass design used in the failed PH48 ecore is very different than spec'd the classic PF48 separate bypass and adbv design and metal center tube.
And, while GM specs/allows an ecore with combo design in several other applications, apparently for models using the ACDelco PF48 it does not. So, while the exact cause is unknown, it's a fair conclusion that something in the ecore design doesn't/didn't work in this application. And 'some' might argue that ecore design is not reliable design in total. Nitrile adbv are known not to be less reliable over time, combine it with the bypass and an open cage and perhaps there is a point to be made.
While we can't blame your dog for a heat wave, here we can definitely blame the PH48 for OP's engine issue resulting in engine replacement.