And the customer, who bought the warranty, and is now having to pay out of pocket for the job to actually be done (assuming it wasn't). Only problem with a fraud claim is that the dealership's insurance policy probably does not cover intentional torts, so OP would have to bring some negligence claims too.
But back to the original point, surely OP's current mechanic can see signs of whether anyone has had these parts taken off before, but maybe not. Issue OP faces is that it's just so egregious for a dealership to say they did work that they didn't really do that it's almost hard to believe.
This sounds like maybe an oil delivery issue. Even if the original guides were not replaced, I wouldn’t have expected them to be worn down so far as to be characterized as “non-existent” - unless you’ve got a ton of miles on them. I recall there are some oiler tubes that drop oil right onto the chains. If one of those came loose or got clogged, that could create a problem - though not for both sides. But I’d want to get look at the parts if it were me - maybe the mechanic is exaggerating.
Just wanted to report back on this. They were the newer guides that failed. So new timing chain, new guides, and some part of the engine that needed rebuilding due to this.
Replaced rear brakes as well as a new radiator. Since I’ve gotten it back, I now have no heat/air flowing in the front cabin (it was working for a few seconds but now nothing - possibly something causing fan to not move?). Also, I have a steering wheel rattle when going over road imperfections at low speeds.
I had very few problems the first 10 years I owned this vehicle, but now it’s needing more repairs than it’s really worth. Unfortunate because I really love it.