MD state inspection is a safety inspection and only occurs when the vehicle is purchased. It seems to me that you have a right to expect that the vehicle passes all safety inspection points. If it doesn’t, the inspector failed to do his job. I think it is reasonable to assume that your isn’t the first vehicle that was passed during a cigarette break at this shop. I think you should give them a shot at making it right. I also think you should contact the DMV or the State Police about this. Make sure you have good pictures of the problems. Don’t take it in until the DMV or State Police inspect the vehicle. The State Police might tell you to get it inspected at a reputable shop, then take it back. The State Police want to find licensed inspectors that cheat the public and make their lives very hard.
I live in Maryland too. In the late 1980s I wanted to sell a car. I decided to take it to a local licensed inspector for an inspection certificate. They told me I needed a couple of bulbs and new brakes. The brakes were a couple weeks old, and the lights worked when I took the car in. I walked in to complain in my black fabric windbreaker, khaki slacks, black tie shoes, and my short cropped hair. I pointed out the issues and demanded that we look at the brakes. Golly gee! They were perfect! They shop supervisor got very nervous. I supposed from the way I was dressed and my short hair he thought I was a state cop ready to bust him. They fixed everything on the list for free. They didn’t want to lose their license for safety inspections. I bet the guy you talked to doesn’t want to lose his license either. If there are any other safety issues, and no doubt there are, you might everything for free since they did such a poor job to begin with.