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1) The warranty is for hardware , you issue is with software.
2) Your warranty had expired.
3) It is your choice to decide to upgrade software.
4) If you can't update or restore your iPhone, iPad, or iPod touch - https://support.apple.com/HT201263 - You can put your iOS device into recovery mode, then restore it using iTunes.
Question: Why can’t warranty cover iOS update crashing a iPhone 7