Yes. A strut or shock can fail after a vehicle is raised on a lift.
When this happens, the strut or shock is hyper-extended past it’s normal travel when the suspension is allowed to hang. This then can damage the valving inside the strut or shock to where it no longer functions correctly.
This usually happens when the strut or shock is quite old and the valving inside is worn out. The shop did nothing wrong. All they did was reveal that the strut or shock was worn out.
Tester