Hey guys,
Almost a year since my original post.
I ended up with brand new engine, oil lines and clutch. Unfortunately I had to go for two more unplanned visits. This time regarding disappearing coolant. Every 4K miles the reservoir would be almost dry. Both times dealer pressure tested the car and didn't find any issues.
I decided not to wait for third. The whole situation reminded me of how I ended up with new engine to begin with. I decided to get rid of the car.
At the same time I have to give credit when it's due. I hear a lot of negative things about CS of VW. In my experience it wasn't the case. Communication with Regional Manager was positive experience under circumstances. That said after second visit to dealer I reached out to RM again and I ended up with a voucher towards purchase or lease of any new VW.
After some test drives and thinking I used it towards 2016 GTI SE 6M PP and light. When the car works - it has no competition in my eyes. I'll be picking it up in next few hours. Hope second GTI will be charm.