Jasper engine failed immediately

I replaced the engine with a Jasper rebuild but it failed within a few weeks of driving it. They scoped it and found a hole in the cylinder wall and metal on top of the piston. They did a warranty claim on the rebuilt engine but now they are saying the warranty will be void for any future issues. Is that normal? Feels super shady to be sold a defective engine and essentially lose out on a 4 year unlimited mileage warranty period going forward. This was a Jasper engine bought through autozone by the dealership that did the repairs. Any advice, thoughts, is this right?