Apple in store repair issue

Hello, I am having an issue with the screen display, shown in the picture follows, I went to the store and show the staff the problem, they told me since my phone is still under warranty, there will be no charge on fixing the screen, however, there is a small crack on the edge of the phone, shown in the pictures, in order to fix the screen, they will have to fix all other physical damage first, otherwise they cannot proceed, and since I do not have apple care, the charge for the crack is $1059 Canadian dollars.

The crack itself doesn't bother me, and I am sure that the crack has nothing to do with the screen, beside I don't even need it to be fixed, I am not spending over a grand on a crack, but the staff or technician refused to listen and do the repair.

I have never had my phone fixed before, so I'm not familiar with how this should go, is it normal? or is it a rip off?