[jsmith948]

Well - I think I would have a conversation with the service manager. Either the tech/service department doesn't know what they are talking about, or they are deliberately trying to scam you.
First of all, unless the brakes were way out of adjustment, you would have felt the brakes dragging. If not under power, certainly every time you let off the throttle to come to a stop.
I would be concerned about the other issues you are having them work on. To me, it is all about trust. Once you catch them in a lie, how can you be sure that everything else they say isn't BS.