Yep they told me there was "nothing they could do", so I am on the hook for their design flaw despite taking excellent care of my machine. I have replaced the device with an Asus Zenbook since then, even though I was originally planning to get a new Surface next year, because Microsoft does not seem to care if their laptop burns my house down.
Microsoft wants to compete with Apple with premium laptops, and while it is a nice laptop, the service is not. The difference is that when MacBook Airs had a similar problem, Apple replaced them. And that is why Apple keeps their customers and I have stopped buying Surface. The cost of reputation is far more than admitting a mistake and fixing a few machines.