Good God I hate this state, sorry bud.

So you don't need new fenders, but you required them to be welded up. They are not upselling you on the exhaust. You need a new gasket and will need any holes repaired or the pipe replaced. 800 is a bit high, but if you do the fenders yourself with a welder or bondo and good paint it will get you two years, just let them do what they need with the exhaust.

And yes, this is very normal.