TE/TC Barrel out of clearance - Factory defect

Hi,
I own a TE300 2015 and here is my story:

I bought the bike in July 15 and just after 25-30hrs there wasn't compression at all (February 16). I went to the dealer which decided to put it new piston and rings although the barrel and piston were not damaged with no signs of excessive wear or foreign objects, at my cost. At 70 hrs, same problem, no compressions (July 16) so with the dealer we decided to send the barrel to be measured from an expert. It turned out that is out of clearance and is not the first time that this happen or being seen in a KTM300 engine.

I decided then to file a claim for an original component failure since I can't afford put a new piston every 30hrs. Husky turned back by saying that according to the Warranty Exclusion basically nothing is covered. Although this has no meaning since the consumer protection act override Husky statements, what would you suggest? Have you seen this before?

Any suggestion would be welcome!
Thanks
Cheers,
Simon

Dealer didn't check it?

Sounds like a trashy deal man hate to hear it

bought it new? bought it used? without details there are no possible suggestions or conclusions. cylinder out of round? ports? edge machining?whats not to spec? I personally find it very hard to believe that the cylinder left the factory in an out of spec configuration. these things are not hand finished its all automated computer detailing CNC and manufacture from casting to machining to plating, until final parts match, deburr hand work, but thats just to clean and match the parts.
https://blog.ktm.com/a-visit-to-the-ktm-engine-plant-2/

Bought it second hand at 20 add hours (6 months old) and bike being serviced by dealer itself after every ride (I have the invoices so can prove it). Basically the bike is well known. I understood bore hole out of tolerance and piston get some slack after few hours... Will go check again and get hold of the measurement tomorrow. There is some marks on the bottom part of the piston where he hits the exahust port as when it goes up, probably is not fully straight (attached pic of piston at 30hrs). I also believe is quite rare to find such issue but machines needs to be calibrated and maintained or could have had a temp issue. It can happen and the expert that measured the barrel said wasn't the first time that he sees a ktm300 out of clearance.

I will go to the end becuase the only solution here is to nicasil again the barrel and re-machine it.

Man that's a bunch of blow by all the way around.... I'd almost say way more that 30 hrs.....

Yes, I guess having the bore out of clearance, as soon as the rings gets slightly worn, blow by happens.

Anyway, Husky according to their warranty exclusion couldn't care less.

So, ri-nicasil the barrel at my cost.

No that's just blow by and running rich, were the rings in the piston stuck or free moving?

Looks like top end and new rings bare minimum.
Fix it and get a quality built machine.