Was Told To Choose Between Core or Pro-Rated Refund

Bought a Kirkland 100 month limited warranty battery for my 2006 Pilot SUV in 2011. Honda dealership recorded 374 CCF left on it and advised a replacement done for $125 around mid 2015.
I took it to a Walmart store to have the Everlast battery as it got the best consumer report rating. Walmart retested the battery and I think recorded around 405 CCF and said the battery should still be fine and they would do a free recharge if I would leave the car with them for a few hours. Instead I bought a Battery Tender recharger from Costco during the Christmas sale and recharged my Battery with it. Unfortunately the battery died after a short trip to the local YMCA where my wife drives to for her daily workouts, I had the presence of mind to stop by the local Costco and buy a Lithium Charger and a new Interstate Battery code #23 and paid $15 core charge. I was able to jumpstart the Car and took it home to have the battery replaced and took the original one back to Costco for the core refund. Luckily for me, I had the original receipt and Costco gave me a pro-rated refund that came to 40% or approx $29 after taxes. I asked for the Core refund but was steadfastly refused it saying I could either get a Core refund or the pro-rated refund on the battery.
My question is if the Core is for encouraging a return of the original battery for recycling purposes then I did just that. Why should there have been any linkage to the pro-rated refund based on the 100 month Limited warranty? Who is right here - Costco or me?

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