casaus19 - From the photos I'm left with a question. Was the tolerance from the crank sprocket guide to the belt the thickness of 1-2 business cards? This is in assumption all of the gunk was washed off to take a good measurement. There is a slight chance the tensioner is failing, or has failed. I saw this on a motor once before and the damage was pretty similar except the idlers' bearings were worn out too. This too was with a new timing kit. It turns out the tensioner failed and allowed the belt to have a slight amount of slack, which then allowed the belt to slip over the idlers and burn their bearings in the process. More thoughts on the tensioner, if the install tech had to compress the piston back into the tensioner then there is a chance it was damaged in the process.
Since the motor is removed from the car and torn down I would push for a replacement belt as well as new tensioner, and all idlers. They may hard ball you a bit since the motor has been removed, but it is worth a shot.
Best of luck with the rebuild as well as the dealership.