Crap like that is why companies have walked away from consumer-biased warranty policies. LLBean had to change theirs as well: https://www.businessinsider.com/why-ll-bean-changed-its-retu...
Example: I once returned a board that I had cut in half. It was window trim with a shaped profile, and I had previously purchased and installed some of the same SKU before. When I went to install my freshly cut board next to the first ones, it was a little too obvious that it was from a different batch or manufacturer with a slightly different profile.
If they offer the warranty on drill bits, then there's nothing wrong with using the warranty on drill bits. It's not being a bad customer.
Could be. Maybe it snapped?
Oh, I agree - I've snapped dozens as well due to misuse.
But it is not inconceivable that a bit snapped due to manufacturing defect (I just don't know how the store can tell the difference).