Why do people like you have to be so cynical. Are you a troll?
I typically find these stories hard to believe even the ones in the "mainstream" media.
-How would the police know who had the phone. Did they stop every person at the gas station and check them? (or house, or apartment or what ever the location is for a particular similar story) Police can't enter pockets or force someone to empty their pockets unless they are under arrest. They can only pat a person down if they simply want to ensure their safety during a face to face. (if they do then that's their get out of jail free card). I didn't read all of OP's posts but I didn't see anything in the first post that said he played "sound" you can do when you're on FMi.
-I have family members with different agencies around the country and I have asked if they would "track" someones phone and they simply laughed. Maybe this police force has nothing better to do but I know in Miami, Orlando, Denver, I was told they don't have time or resources for such things.
-Why suspect a person stole the phone? Just because someone has something doesn't mean they stole it. I have picked up items and later found their owner to return said item.
-Police would have no reason to suspect this person stole the phone. I guess the could arrest them for being in posession of the phone but any $2 lawyer would get a person off on that. "Officer, I found this on the bus and was going to try and find the owner in the morning.... No I never heard it ring as it was in my (pocket, backpack, briefcase) and I was wearing headphones." Unless there is a "He grabbed it out of my hand while kicking my butt" story to go along with the "stolen" phone, I'm not sure an arrest would go very far.
I'm not saying OP is lying I simply stating these are the questions I ask myself with EVERY one of these stories. Want to call me cynical? I have no problem with that.
Glad it worked out for OP and his daughter.