iPhone 13 battery swelling and screen detachment

My iphone 13 battery was swollen, and the screen came off. The Apple service told me that it should be covered since this is a known problem with iphone 13. Since Apple found an additional problem in my phone (cellular issue) they are unwilling to cover the screen and battery and want to charge 600$ for the repair.

How does this make sense? Why hasn't apple recalled the iphone 13 initially, if I was given a product with a defect?

I am so annoyed, I know that the phone would have been replaced for a new one, and this is Apple's chance to get paid for it. Apple has said that I can either get my phone back unrepaired or pay 600$ repair.

What should I do?

[Re-Titled by Moderator]

Original Title: iphone 13 battery swollen