Hey, might wanna redact this post if you are still a current employee. Or remove certain terminology at the very least. Just a heads up, CYA.
I'm aware that if they bring proof of purchase and photo ID, through iCloud Support Tool, the device can be activation unlocked; as long as it's not in Lost Mode. What I was referring to, was the previous reply's assumption that customers can just bring in activation locked devices and get Apple to replace them.
Systematically, repairs through the Genius Bar cannot be saved if Find My iPhone cannot be turned off. So.. there's no money laundering here through the Genius Bar.
Source: Apple Technical Specialist (me)