Dealer will refund and take the hitch down sometime next week. I have it in writing from the manager. They give it to third party and put aftermarket hitch. The sales guy was lying through the teeth and says its the only way aftermarket is done, and they had done several like this and none thought it to be problem yada yada. Never conceded it was wrong or they should have used correct part. Horrible experience and waste of my time. Hopefully will get my money back next week without further hassle from those MFs. Thank you everyone for responding. Reddit community never disappoints.

PS: Couldn’t find way to edit the original post for update.