ask them to review the footage at the dealership to see what actually happened.
If they have gone below the clear, then in my book, you have the right to take it to a proper repair place and have the work 'done properly', including the blend of base coat in to the surrounding panels, and the clear coat re-applying.
Of course, all at their cost. Don't let them take it to anybody to do, you should push to take it to somebody you can trust.