2015 Kia Soul Excessive Oil Consumption Options

So my wife's 2015 kia started consuming oil a while back. It had around 115,000 miles when it start. The catalytic converter clogged up right before that and I didn't know about the excessive oil consumption issues these engines have at the time.

So now it's consuming about 1 quart every 500 miles or so and has 126k miles on it. And just the other day it started misfiring at throughing the 02 bank 1 sensor 1 code.

After restarting it, it ran smooth for a few days, but now it's started again.

My guess is the excess oil being burned is fouling up the exhaust and the O2 sensor.

I sent her to pick up a new O2 sensor to try, but what I really need is the engine replaced.

It has a PI2002 engine warranty extension to 150k for rod bearings knocking that some ECU update was supposed to solve.

The dealership says that doesn't cover the oil consumption, but they act like if I just intentionally blow the engine up by driving it hard etc (as long as I have maintenance records) the warranty extension would cover it.

Any thoughts or suggestions? I'm all for tearing up the engine, but how do I know for sure they would actually honor what they say in that case?

Thanks for any advice.