Yes, they have to repair it under warranty. The Magnuson-Moss Warranty Act protects you here (assuming you're USA). I would definitely swap back your old drive unless they guarantee that you're getting the same one back. If you send it in they may send you a different one that doesn't have your drive in it.
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64GB eMMC LCD
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256GB NVMe LCD
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512GB NVMe LCD
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512GB NVMe OLED
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1TB NVMe OLED
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- 45W Power supply with 2.5m cable
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This is absolutely true, and there is similar legislation in a lot of the rest of the world.
But a lot of companies do their best to avoid honoring their obligations. So Valve both saying they will and having a track record of doing it is useful to know.
(None of this is relevant if you actually break the product yourself in the process. Warranty doesn't protect against user damage (unless they explicit choose to include that).)
I was not aware of this. That's great.
Legally and practically are very different things. Is it a big company? They can and do absolutely get away with voiding your warranty like that because almost no one can afford to sue them, and if they can afford it, they're probably just going to buy a replacement.
It sounds like Valve will be pretty cool about it though. As long as you didn't trash your Deck or something.
I had to rma mine for a battery issue. I swapped my 1tb drive out for the standard one and I had no issues. It also mad it easier when I got my new one. I was even short a screw and I never heard anything.