This is awful luck and your LBS being less than supportive is hateful at this stage of the pandemic.
Its also breaking their contract with you in the US.
I’m certain your consumer rights in your State (being in the US) mean your contract is with the entity that sold the bike and everything that the bike comprises. You bought a bike, not a frame and a bunch of components.
Consumer law recognises that. It’s the same for a washing machine. The only difference is that many in this forum are familiar with fixing their bike which makes us feel that the brakes, say, are kinda separate from the bike, being bolted on etc... Well, stop that thinking. The brakes on your new bike are no different to a bearin or whatever inside that washing machine.
Would you accept you had to negotiate with the bearing manufacturer for your broken new washing machine? No! And consumer law would be on your side.
Thats simply not up for debate and don’t trust anybody who disagree. Instead, just go and look it up on-line.
The other side of that coin means that you will break that contract if you do anything to fix it, especially with it being brand new. Just imagine if you took your new washing machine to bits to examine and possibly replace that busted bearing the day after you bought said washing machine. Absurd, right? The same with your bike.
This is another fact in the US and, btw, the U.K.
Your LBS made it’s profit when it sold you the bike. That’s probably why a bad LBS is lying to you.
From now on, all the warranty work costs them the labour time in the service area which they will not get back from you, nor from the brake manufacturer. The warrantied part is supplied free from the manufacturer warranty department to the LBS.
But the LBS has a longer term interest in you, in those you know and so forth. They make money from all that. So, it’s surprising they aren’t helping you. So, its a bad sign that they aren’t. So, take care not to break your side of the contract: you must let them fix this to achieve that, even though they are 4 hrs away....
If you choose to negotiate with them, get those negotiations in writing (email) before going ahead. Only you know your priorities — it sounds like you’re desperate to ride your new bike.
But make no mistake, deviation from insisting the problem is wholly the responsibility of the LBS that sold you the product gives the LBS and the brake supplier/importer/manufacturer a chance to say you broke the contract.
Dreadful, sorry....