You probably will not get an admission of responsibility from the shop, but you already know that.
What I’d do is retap the existing hole for a larger one and put a new plug in there. I’d measure the hole and then get a tap which is a little larger at Sears and bring that tap to an auto parts store for a plug. Then I’d run some oil through without starting the car. I’d put a small but powerful magnet in the pan. This would be easier with the pan off the car, but I’d at least attempt the repair with it on.

I use to take an old rear wheel drive Olds to a Jiffy Lube about once a year, not so much for the oil change but for the front end lube, 11 of them. I use to watch them not clean off the grease fittings and more than once, I had to remind them to grease the hard to get to upper ball joints. They thought I was just another average idiot customer. Ha, little did they know I was an above average idiot customer. After about 4 years of this I gave up and started to lube it again myself even though I had to remove the front tires to get to the upper ball joints.

I have seen some drain pan fix-it posts on one the 200 700 or 900 forum but the search feature is not working at the moment. It seems like there is a kit available but that is only if it is stripped. I'm not sure what is broken. You said the nut part inside the pan is spinning and the bolt is stripped but it cannot be both. If the insert is spinning, then the bolt cannot come out, true? I never heard of the nut thing inside spinning loose though.

Question, did they booger something up so you were able to drive it home or is it stuck there at the shop?

My guess, it is a small independent everything garage where the problem happened, not a Jiffy Lube but they are more than capable*. Again, just a guess. Wait, wait, you said "store manager". Wally World? The store manager may get his ass fired, because his foundation is crumbling!

*BTW, before I bought my 1993 944 the PO confessed that the engine had to be replaced because Jiffy Lube forgot to replace the drain bolt when filled with oil. Receipts were there, replaced at a Volvo dealership and it even showed up in CarFax as an independent inspection (by Jiffy Lube's liability insurance co).

Anyway, the oil drain bolt is supposed to be tightened to 35 ft-lbs, not 65 ft-lbs. I admit that that the 1" drain bolt head infers a torque till your face turn red plus another 1/4 turn to some who should know better. Maybe "torque oil drain bolt to 35 ft-lbs" needs to be stenciled on the oil pan for those few.

Unless the shop can take responsibility, get it towed out to an independent that specializes in Volvos among others, order a (red) pan from the link in TurboBricks and have the shop install it. Then go to the county court house and file a small claim.

But one more thing, if you had the same shop change the oil many times, it is indeed their fault. I agree that it is definitely not and never will be a wear item.

Tom

http://forums.turbobricks.com/showthread.php?t=251986

The place you go to get your oil changes is crooked. They destroyed your oil pan, and are charging at least five times what the job should cost to fix.

So the clowns doing an oil change messed up your drain plug. Go to Turbobricks.com and place a want ad for an oil pan. You will have one in no time.

There's no 'nut' exactly, but a welded on plate. A search of various Volvo sites or google images will show this.

Oh, from this point I suggest you get pics, and document everything, as you may have a claim. That is, it's highly likely that they overtorqued the drain plug.
Often though the plug is damaged, not the pan. Take it to someone who knows what they are doing and knows these cars also, if possible.

A pan can be gotten at a JY. It's not easy because of the crossmember, and how low the oil pump sits, but it is possible to do a swap in the car. They are probably estimating an engine r/r.