I work at a Volvo dealer so I can tell you that your story is HIGHLY unusual as written.
IF it was maintained by ANY Volvo dealership, there'd be records in thier system AND your service maintenance book would be stamped.
At no time is "sludge" routinely removed AND the only way to see it is by removing either the oil fill cap with its screen or better yet, removing the oil pan.
IF there are no dealer records, no book stamps (like IF there's another side to this story?), then an both Volvo and any extended warranty like VIP will deny the claim
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