It appears that the service adviser that wrote that is unaware that LKQ is a network of salvage yards that sells used auto parts.
The last time I got an engine from LKQ they had removed the timing belt and tensioner pulley from the engine before shipping it with a notice that a new timing belt must be installed, a new timing belt is required under their warranty terms.
Check the parts list on the engine replacement invoice to see if there is a new timing belt, water pump etc.