I’ve got some great news! Apple has agreed to cover me.
Their Agreements Team initially tried to back out, but when I escalated the matter to a Senior Advisor, he took more notes and built a strong case for me. He spent a couple of hours but managed to get the powers that be to approve my coverage this time. It all came down to the fault occurring so shortly after my AppleCare expired.
Earlier today, I got a call from my Authorized Repair Centre, who confirmed that the problem was indeed caused by the display itself, not any other component. They’ve ordered the necessary part(s), and I’ll have my iMac back in about a week or two.
I’m so relieved that Apple stepped up to take responsibility and kept themselves in good standing with me. Honestly, I’ve invested a lot in their ecosystem, and I expected them to value my loyalty. It was a real shock to be abandoned so suddenly at the beginning.
I only hope they do a good job and get it fixed once and for all.