My drivers side fog light had condensation that wouldn't go away and the housing was burnt partially on the inside, so I took it in to the dealer today. They said the light wasn't installed correctly (the bulb) and said they won't replace it under the extended warranty. They offered to reposition the bulb and so I let them and got the car back. When I got home and after I washed the car, I noticed the bulb they worked on is cracked! The glass outside of the bulb is cracked!!!! What should I do? I don't want to spend $220 on a new assembly

I would just replace the bulb and see what happens..

Take it back and ask them to good will it.

That said, you can probably get the glass for about $120 online.

I just decided to pay for it since the dealer was being adamant. They gave labor for free and then charged $84 for the fog light assembly with bulb included