Macbook Air M2 screen

Did the Apple tech explain what he/she thought has happened to your MBA?

I find it odd you were told it's not under warranty. Every new MacBook Air comes with a one year warranty, and 90 days of tech support. It's shown here: AppleCare Products - Mac - Apple

Your issue would be covered under the one year hardware warranty.

You can purchase AppleCare to extend the warranty to three years, if desired.

It sounds as if your MBA shows no physical signs of misuse or damage? Yet the Apple tech said it HAD to have happened because of someone pressing on the lid, and because of that he didn't feel it was a manufacturing defect Apple is liable for? I'm having trouble understanding how he could come to that conclusion.

If it were me, I'd get on the phone to Apple Support, but this time insist on speaking to a Senior Advisor. The Senior Advisors have powers mere mortals like AppleCare Tier 1 reps are not allowed to have. Explain your situation to the Senior Advisor, and see if they can resolve this satisfactorily for you.

The Apple advisor is simply following Apple's policy. If you wish to talk to Apple about the issue, you can start with the "Support" link this page bottom left.

If you wish to make written feedback to Apple: Product Feedback - Apple

Anyone would be led to believe that this is a tactic to squeeze more of our hard-earned dollars from our wallets.