If they replace the whole engine, I don't say it will happen (so far however, every bit of information kind of leads into that direction), this solution would actually be the best one in my opinion.
Why? I wouldn't want some dealers opening up my engine and messing around with it. We all know that the quality of mechanics isn't always the best and I wouldn't want anyone to mess around with my brand-new engine, no thanks.
Porsche always has, in the past, exchanged complete engines on newly put on the market cars when there was something wrong. Dealers were never allowed in the beginning to open an engine and start repairs on it. I would be surprised if they would start now.
So if there is a serious problem inside the engine, the engine will very likely be replaced.
I do not think this is a bad thing, on the contrary.
Also, replacing the whole engine doesn't mean that the engineering was bad. One single part can be the cause, it could still has something to do with supplier quality (and I actually still think it does).
So if you get a new engine, be happy about it. I wouldn't want anyone starting opening up the engine on my (almost) new car.
I would however expect Porsche to provide an "appropriate" compensation for the time I couldn't drive my car, even if they gave me a loaner. I am pretty sure that Porsche will do that, no matter if it happens in the form of some sort of gift certificate or free driver ed training offers. I would also expect an apology and I am pretty sure this is going to happen too.
For me, the engine exchange would be the best solution but I understand why some people here are suspicious or angry.
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RC (Germany) - Rennteam Editor Porsche 991 Turbo S, Porsche Boxster S (981), Jeep Grand Cherokee SRT (2014), BMW X3 35d (2013)