i once got a outright sale estimate from Carmax on my Lexus Sc430. I had owned that car for 18 years since new. The car was mechanically perfect and original. Carmax told me the car had been wrecked and repainted and was impacting my offer. Other than one small door ding that had been touched up by me with a paint stick, that car was as it had left the factory. So you can’t always believe them.It concerns me that they weren't proactively transparent in sharing the damage. That combined with their pushy sales tactics make me wonder if there's other stuff they're not being transparent about.
Don't know who you're talking to, but I'd politely ask to chat with the Sales Manager. If he/she doesn't welcome an independent inspection then that'd be a red flag.... at least for me. I bought a used BMW from a BMW dealer years ago, and they were more than happy to have someone inspect it - even put it up on a lift so the guy could check out the undercarriage. It costs them literally nothing to support you in this manner. And, if they have 10 other buyers lined up (which is of course BS - the LC is an acquired taste), then if it fails your inspection they have 10 other buyers to sell to.
It would suck to have to walk away from an otherwise perfect vehicle, but I suspect you wouldn't regret it in the end, if push comes to shove. Will take you just a couple of weeks - worst case months - to find the perfect next best alternative.
PS. I tend to buy new cars, as I've had mixed luck with used. Bought a used BMW which was independently inspected - and genuinely good. Bought a used Mini which was independently inspected and apparently in immaculate "like new" condition. It did look good, though it had some minor mechanical issues. Years later I took it to Carmax to sell who informed that every body panel except 1 had been repainted. Wtf?! So I decided to preferably buy new or do more research on inspectors. A Toyota body shop would be a good place to go because they WANT to find issues (to fix, at your expense).
Good luck!