Assuming that’s the display of your MacBook Pro, there are two different ways to view this:
There’s no technical reason to repair a cracked display when replacing a top case. While the entire MacBook Pro must be disassembled, the display is only being removed. That same display can be reattached without any issues.
There’s a policy that prevents Apple and/or the ASP from working on a machine with a broken display due to the hazardous nature of broken glass.
- That display can become further damaged resulting in higher liability for the service provider
- It could cause injury to the technician attempting the repair.
Companies have this policy because of a phenomenon called he who last touched it owns it. In other words, when a technician services a product (not limited to computers) they are responsible for every issue that comes up regardless of how unrelated it is to the original issue. If they find any damage, they will refuse to service it until you address the other issues. Apple does this when they see the moisture detection strips indicating the presence of moisture even though there was no liquid damage or the issue isn't even related.
Would the Genius at the Apple Store have seen this? MBP ran perfectly fine with the exception of the bloated battery.
Yes. They are supposed to inspect the device for any damage prior to being submitted. Every device I’ve taken in, from iPhones to iMacs, for warranty service was inspected. They will take note of any damage.
If this damage was not present when you dropped it off, then you need to make that known. However, if it was, but missed by the technician, then you’ll still be on the hook for the repair.
Now as to being related to the swollen battery, it’s very unlikely that the swollen battery would cause this because the battery is down by the palm rest and the top of the display (when closed). Since it appears that the damage is near the bottom of the display, it would be closer to the far end of the top case or where the logic board would be. Your case would have to be completely distorted from a swollen battery to cause that kind of damage.