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Google might keep your Pixel during a repair if you're caught using non-OEM parts
(www.androidpolice.com)
This is a most excellent place for technology news and articles.
More than likely the reason for this is because they are not sending the original device back.
They are probably pulling a used one that is in good shape from the shelf that is the same style, etc - shipping it to you as the replacement in order to save time and sending yours back to a repair center to be worked on if possible.
Or just junking it out right.
Came here to say this. Companies send refurbished devices out, they usually make it really clear that you should wipe your device and not expect to get data back exactly because once they receive the device and verify its condition within reason, they send a replacement. Nintendo, Apple, Pixel, Samsung have all done it to me.
Pixel is doing this because they can't send someone else a phone with a non-oem part. If they do in the US they take liability if it's a cheap Alibaba knockoff that does something stupid like make the battery explode. As screwed up as the US laws are, it's difficult to fault them for CYA.
Bottom line is, if the phone has a non-oem part they can't vouch for it, so they need to put your phone in the queue to get fixed is how it reads to me.