Gec will fix them even though they are a 2nd any gec is warranted for life against defects like the one you mentioned i have had them fix 2 factory seconds anjust give them a call
I was under the impression that the warranty worked how you state, and the "store" knives were only so because they had some small aesthetic issue that made GEC want to sell them in store so the customer could see it first.
This #25 was definitely treated more like a "second" than a "store knife" but I suspect that is more to do with the cover material, unicorn Ivory acrylic, being so problematic than an overall change in service.
My #35 seems to be fine. Just had some grit in the pivot it seems, hopefully nothing permanent.