Gift card code invalid as PBH numbers don't match

I received an Apple gift card of the type with the card inside a sleeve with a PBH serial number and bar code on it. The card was activated using that number on the outside sleeve, but the card inside (with the redemption code that starts with X) has a different PBH number. I went to the store and they won't replace it ('it is Apple's fault'). I called Apple support and they said 'go back to the store'. Essentially, Apple has manufactured a defective product and will not 'repair' it.

Has anyone else had this issue and if so, were you able to resolve it?