Ok... revisited tge Oceanside Service Center
They today confirmed my earlier post that there IS a criteria that is used to replace batteries under warranty as I had described. For MY car (2014 S 85 with 136,000 miles) the nominal degradation is 231 miles rated range from an initial 265 miles rated range both numbers based on 295 Wh/mile.
However, when confronted with my data that my 217 mile full pack rated is now based on 276 Wh/mile, they refused to accept or acknowledge my data. Claiming they do not trust ANY 3rd party data and they can ONLY go by the data that their test set provides. So, until my car's full pack rated range drops at or below 208 miles - or my display show a battery error code they can do (and will do) nothing.
I guess I shouldn't have been surprised by this.