A 3 foot dent/crease on a door is out of the ordinary.
It’s true that modern cars use lighter/higher strength materials/metals than they used to, but on a door skin? probably not.
It very well may be cheaper to replace the door in terms of labor.
Body/paint shop labor has always been expensive. It’s a labor intensive line of work.
When it’s practical to do so.
It’s still used, but using it to fill a 3 foot dent/crease might not be a great idea.
They probably expect the owner to want to be to repaired to as close to as-new condition as possible. Which is reasonable. I bought a new car back in April of 2016. In August of 2016, I was stopped at a red light and was hit from behind by a guy who thought that the light was green. Fortunately it wasn’t bad (impact speed was probably less than 5 MPH). I thought for sure that the rear bumper cover was going to be split, but it wasn’t, though it was chipped. The guy who hit me said he would pay for repairs out of pocket. A police officer showed up, didn’t cite him with anything and just made sure we exchanged information. I got three estimates, all were within $40. To fix the chipped paint it was $700. They had to remove the bumper cover, smooth out any indentations, paint the whole thing, and put it back together again and back on the car. As I said before it’s a labor intensive business.
You have a new car, and don’t carry comprehensive coverage? That’s staggering.
I don’t think you have a firm grasp of what constitutes fraud. Nothing you described suggests that any fraud has taken place. I also get the feeling that you aren’t aware of how much body work costs these days. On a 2018 VW Atlas, if they are planning on replacing the door with an OEM part, labor + paint, I could see that costing at least $2k- closer to $3k if not more if you live in an area with a higher cost of living.