They really should send you a newly manufactured one, even if it's a newer model. I suppose they were unable (or didn't try) to replicate the fault, so mistakenly thought that either there was nothing wrong with the device, or that you were trying to pull a fast one to get a newer model.
They don't know that you're an honest person with a genuine problem, but good customer service should always treat you as one.
Any chance of a refund? Have you asked?
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