Previous year new model -> 'used' original warranty intact?

Edit: answer below

Currently shopping a car that is a 2023 Kia EV that has sat on the lot unsold for over a year. The dealer has it listed on their used inventory with huge price reduction. I've been shopping this car for several months looking for exactly this type of deal to avoid the heavy depreciation.

It has never been delivered to a customer, but they are stating it has changed ownership when it went to their used lot, and therefore the warranty would be the Kia 2nd owner warranty. This cuts powertrain warranty in half (5yr 60k mile instead of 10 yr/100k mi) and means the 5yr/60k bumper to bumper started when it was transferred, leaving 3 years, 59k miles.

Does this sound right? Ive always heard warranties begin at purchase/in service date. What's interesting is carfax does not show it as a 1 owner vehicle or that there was ever a purchase of the vehicle, only that it was offered for sale. There's two dates: 5/2023 'dealer inventory': offered for sale and 8/2023 'name of dealer:' vehicle offered for sale.

As a last resort, they said they could certify it, so it becomes a cpo and does reinstate the 10yr/100k mi warranty, but I also have read Kia is the custodian of original warranties, but 2nd owners the custodian of the warranty is a 3rd party that may not approve claims as easily.

Thanks for any insight!