My phone is rejected for the sleep wake button replacement programme although it has a valid serial number..

As mentioned, my phone has a valid serial number for the replacement programme, but at the same time, my camera is broken.
I took my phone to an apple service centre, they accepted my phone, gave me an official receipt and told me that it will take 2 weeks. However, when I went back to the service centre to get my phone after 2 weeks, the person said my phone cannot be replaced as it has a faulty camera. Seriously? I waited for 2 weeks, and this is what I get ?
1. Is it true that my phone cannot be replaced due to other hardware problems ?
2. If my phone cannot be replaced, why didn't anyone from the service centre call to inform me instead of having me wait for 2 weeks and telling me that they cannot replace my phone ? Why did they even accept the phone in the first place ?

There aren't any physical damage to the phone, I didn't drop it, it happened just one day, I tried to open the camera and it's just black screen. I clicked the capture button and there's no response.. Just like that. the front camera still works.

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