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The mechanic also claims he doesn't even have power tools in his shop, so this would've been done with a wrench. If anything, they claim, the threads would've stripped before the case would've cracked. However, the mechanic (and 2 other mechanics, including a transmission expert) say they've never seen anyting like this and this couldn't have been caused by overtightening because the threads are all completely intact.

It's still under warranty so I brought it into Subaru and they immediately said they cannot honour the warranty because this is clearly a human failure they claim the mechanic overtightened the bolt and cracked the casing.

This plug would have been taken out and put back during the transmission fluid flush. The piece broke off near one of the plugs (I'm no expert, so excuse the poor explanation). So I brought it back to where I recently got the transmission fluid flushed and the mechanic literally broke a chunk of the casing off by hand. I recently noticed some fluid leaking on my driveway, so I brought it into the shop and the mechanic said there was a crack in the transmission casing.