but although the block's aluminum, the ONLY metal that a magnet would pick up is metal from piston rings or cylinder walls (BOTH highly unlikely to wear fast enough where the oil filter wouldn't normally pick up fine particles). The other wearing parts would be bearings which are aluminum and brass, again not magnetic and cams and other valve train parts hardly ever wear in Volvos.
I'll bet you won't find IPDs magnetic plug in Irv Gordons 2 million mile 1800S :)
As for the magnet getting lost in the pan? If you've ever seen the inside of any FWD oil pan you'ld see the oil baffles and realize that a magnet on the bottom (if so) isn't too likely to be somehow sucked upwards towards the crankshaft (the ONLY magnetic thing closest to the bottom at times). It could get attached harmlessly to the sump also, no problem)
What I think really happened, the dealer tech thought that it was BS and replaced it with an OEM plug (it didn't just fall out), especially if it had rounded edges from an improper wrench before.
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