Camshaft failure caused engine to die
Engine in my 2006 IS350 lost power in the middle of the freeway. As it turned out, this is the camshaft failure (code P0345), also 3 misfire codes, and few more codes. Repair shop that diagnosed it said that the engine is toast, full of metal particles inside, and there is the recall 13V-395 that started in 2014 that covers the failure. For some reason Lexus didn't do repairs for this particular recall when I brought it in last year. Repair shop told me that Lexus should cover 100% of costs because of the recall.
I brought the car to the Lexus service center. But after a few days they left me a voicemail saying "We performed all repairs, and you can even drive it out, but it smokes a lot now. We need you to authorize some additional tests, you might need to pay for them."
This strikes me as very unprofessional. What does this mean: it is fixed, but smokes a lot? If it smokes, it means it isn't fixed. How can they suggest that I could drive it out if I wanted when it "smokes a lot"? Isn't this an insane suggestion?
Any tips how to handle this? Isn't Lexus supposed to bring it back to the original condition (totally normal) because the faulty recalled parts caused the failure?