Absolutely no way a 2021 car fails inspection under normal circumstances. Obvious exceptions would be if it’s a fleet vehicle and driven tens of thousands of miles, you’ve driven it off road - a lot, it’s been in a significant accident, it is a work-horse vehicle that hauls tonnage in the bed/trunk/etc. This shop is likely trying to take you for a fool.

Yeah, how could a car still under a bumper to bumper warranty need any significant repairs.

The balls that mechanic has are something else

I was going to post that shocks are a hard thing to argue because there's no clear pass/fail criteria, it's all kind of a gray area, but there's no way 1 year old shocks would be failing.