Update on my situation:
After informing Apple that the replacement was faulty, has tap to click issue and top case misalignment, the senior I was talking to at the time basically pleaded with me to allow Apple another chance to replace in part due to the replacement highlighting an issue with my original keyboard quality (loose keys), reluctantly I agreed.
The returns process was a complete joke! Good job I preempted the situation by printing my own labels and boxing up myself as nothing was supplied by Apple / the courier even though the Apple Care senior said "don't worry everything will be supplied, the courier will bring an outer box and label, don't worry".
A few days after collection I received a confirmation email to say that Apple had received the faulty replacement laptop but nothing further so chased after 4 days. As per normal no messages seemed to go through via the Apple messaging system or indeed via replying to previous email so after waiting another 4 days I had no option but to call in, and the answering senior took over the case (senior number 7 or 8 now) and after giving him 15mins to read the case notes he requested time to investigate and that he would phone me back later that day. 4 days later he calls back! Based on the case notes he requested a 2nd replacement which was promptly denied! He raised the request again, again denied! Seems someone at Apple has chosen to go back on what was promised and is now insisting on a repair!
After a few days of going backwards and forwards, requesting a refund again, I realised that an Apple brick wall was well and truly in place. In the past you were able to escalate a case to the executive office but it now seems that they have all been fired as senior support is the top level, even though they are unable to make executive decisions lol However during one rather heated conversation the Senior support agent did say that if a repair does not solve the issue that a return and refund would be given! Interesting....
To minimise the already horrible experience Apple said that they would arrange for an onsite repair, but this is something Apple don't offer so it would need to be via an authorised 3rd party. Later that afternoon the 3rd party called and asked when they can collect the laptop! lol So again has Apple failed. Turns out that "onsite" means at the authorised 3rd parties location, ie the laptop does not need to be sent to Apple! I informed the 3rd party that I would not be needing their assistance and sent a message to my senior agent asking for an explanation. 3 days later I received a call from the senior saying "sorry, it was an assumption but this is the procedure and no way around it". At this point I asked the senior to confirm his previous statement for the record, that if the repair fails they will issue a refund, and he agreed so I have now arranged a repair direct with Apple and a box is being sent out.
Why not take it to the Apple store for repair? When my local store (Brent Cross, UK) repaired my 2017 15" (swollen battery) they gave the laptop back to me with external damage in two places and didn't care so I no longer deal with them. After escalating this to Apple Care, in the days when they had an executive office, they replaced the top and bottom cases with no questions asked. I have also been putting off a repair as I run my business from this laptop. Tap to click has destroyed my workflow but I can still perform so being without a computer will cost me a lot, and no I cannot just buy another one as the delivery times are in to July no matter the configuration.
For those not aware of the history of my case I am fully aware that this is most likely a software issue. I have been "going along" with Apples recommendations, testing steps, support procedures and software updates since December last year, giving Apple way more time than they deserve in order to resolve the issue, which Apple Engineering have supposedly already supplied fixes for in the .3 Monterey update, and since advised that this has to be a hardware issue. As a result I am not happy with paying £3300+ on something which they "might" fix in the future so am pushing the issue.
An aside:
I have Apple care plus so am covered as much as you can be yet every policy and procedure Apple have in place seems to be designed to inconvenience the customer / end user as much as possible, from a messaging system that does not work through to not allowing calls to be escalated past senior support / to someone who might be able to make decisions / exceptions or whatever. The procedure that I really cannot understand is that an "answering agent" has to take ownership of that case, even if you are just calling in to give an update. So if you have been talking to someone about a complicated issue for weeks you could call in and your agent is now removed and the process starts over! Crazy!