Had a look at the current sway bar link and took a picture of the part number label that was on it, just to have something to check against when the shop finally does replace this part. When I look up this part number (3QF-411-315-A ) on "parts.vw.com" site, and select a 2021 Atlas, there is a message that states this part doesn't fit the 2021 Atlas. I'm guessing this is a quirk of the parts website, but has anyone seen something like this before?
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Can confirm this part and that replacing it fixed my Atlas. My dealership sent a video showing the part and where it fits under my Atlas, connecting the sway bar to the strut housing. The service associate also confirmed that a "bad batch" from the manufacturer resulted in them wearing out so quickly, that it affects a few 2019s (which I have), and even more 2020s. But reassuringly, that the replacement parts have not resulted in extra repairs. They appear to be built properly, and are much more sturdy.
EDIT: Also, they replaced the driver side initially, and after a test drive decided to replace the one on the passenger side as well. I took it in at 1:15pm. I also had them perform an oil change, the 30K brake fluid change, and the 40K fuel system cleaning (I'm at 38K). They finished all of that by 5:25pm (including an additional time up on the lift to replace the passenger side sway bar link. Quite pleased with the result, and the service I received.