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I don't think coolant can leak from a cylinder bolt, but I could be wrong.
It is very rare for the M103 headgasket to fail in such a fashion, just coolant loss with no oil in coolant or vice versa.
I really want to say its a rubber hose that failed and the dealer is being daft. Did they check the hose at the lower drivers side of the block? I wouldn't throw in the towel until I see a compression/leakdown check.
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