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I would consider a broken adjuster, blown damper, cracked seat lock as not fully functional and ready to be installed. The seat locks were tight, but not seized to the extent that they needed to be cut off and replaced, therefore the coilovers were functional.
Anytime I leave my coilovers more than a few months without adjusting them, over winter especially, the seat locks are a bit seized and require a bit of effort to break loose. Metal on metal, completely exposed, underneath a car in Canada, it's par for the course to have light seizing. It might take me 2-3 minutes to soak the seat locks in PB blaster and break them free, then a few more minutes to clean them for each corner a couple times a year. It sounds like the tuner shop billed you to do exactly that, and I just consider it maintenance. Coat the threads in marine grease to prevent them from badly seizing.
Just my honest feedback.
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