I also have same issue and microsoft is ridiculous dealing with this issue and telling me spend $746 and get another refurbished ****.
They should take responsibility and take safety issue seriously.
"Thank you for your recent contact in Microsoft Surface Customer Support.
We received information regarding an expanded battery issue you were having with a Surface Pro 4. We take these claims very seriously and want to make sure we can get this resolved for you.
My name is Lynette and I am reaching out to you from the Microsoft Surface Support regarding the issue you reported. Thank you for sending in the requested video of the damage to the Surface device. We were able to confirm that this is indeed an expanded battery issue on the Surface.
In line with this, we have reviewed your case and validated the serial number which shows that the device that you have is already beyond 3 years from the date of purchase. With that being said, the best option that we can provide you is the Out Of Warranty replacement for your Surface Pro 4 for a cost of 716.10 AUD.
Please let us know if you'd like to take this option.
Should you have concerns or need further assistance, feel free to reply to this email and I would be happy to help.
Thank you for choosing Microsoft Surface. Have a great day!"