iPhone Cellular Component Failure Responsibility

Two days ago, January 1st, out of the blue the cellular connection on my 2.5 year old 11 Pro (ATT) failed, there was no physical incident that let to that, last time it worked was when I used a car service app picking me up from yoga and once I was at home, the cellular connection stopped working, showing no bars at all.

I just came back from a genius bar appointment and they diagnosed that the cellular component in my device broke, no more details. Solution: Either I pay $560 for a replacement or buy a new phone, no trade-in because of the cellular component problem.

What I have trouble to accept is why a hardware failure in the cellular communication framework on my device is something I am financially responsible for? I do understand the 1year warranty of course, but a cellular component that has no or very minumal a wear and tear situation should work for a long time and if it fails should be replaced for free, minimal fee or with reduced price for a new device?

Has this happened to anybody else? Could this be a software update for the cellular component that caused this issue?

Thanks