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Water damage to a vehicle usually isn't reversible. Once its found its way inside your vehicle, moisture and condensation can spread throughout all your components. I don't think from the picture you posted that its even worth trying to rip out and redo the interior, I think you're better off coming to some sort of settlement for a new car. Seeing as you're still experiencing the same problems even after the "fix" you may want to consider another dealer altogether.
 
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