Quick update. The dealership returned my tractor on Wednesday. Everything covered by warranty as promised. Parts delivery was delayed, par for the course these days. I asked for the damaged parts - they seemed easily fixable for spares - but since the warranty covered the work Kubota wanted them. Fair enough.
As for potential design defect, you can't make a definitive judgment based just on the fact it was covered by warranty. It does seem like an acknowledgement that abuse can't necessarily be assumed as the cause. Also possible they just made a business decision based on the fact it's a brand new machine, the repair costs were insignificant to Kubota, and the kind of damage is so apparently rare that they don't have much worry that everyone is going to be coming in for similar warranty claims. Time will tell on that last part.
As for potential design defect, you can't make a definitive judgment based just on the fact it was covered by warranty. It does seem like an acknowledgement that abuse can't necessarily be assumed as the cause. Also possible they just made a business decision based on the fact it's a brand new machine, the repair costs were insignificant to Kubota, and the kind of damage is so apparently rare that they don't have much worry that everyone is going to be coming in for similar warranty claims. Time will tell on that last part.