Yeah it’s fucked. The FA20 engine sometimes just pops like that.
If the manager is decent they’ll either reduce some labor costs, provide a free rental, or reduce the parts costs down. Likely depends on whether or not you have had the service done there (the sales department and the service department are different entities, loyalty to one is not loyalty to the other).
If that goes nowhere, you can call up Toyota and ask pretty pretty please if they’ll help at all since it’s just out of warranty.
Side note: Spark plugs, rear differential gear oil, and transmission fluid are due at 60k miles. If you do end up redoing the engine make sure it gets new plugs.
Man if you think the dealers are ripping people off by charging people $110 for filters you should see the margins on the quick lube places.