I did not know 3rd party extended warranties had a deductible. Without knowing the details of the warranty, I cannot comment on the ethics of your situation.
Why are they saying they cannot update your MyLink? Never heard of that.
Other than this recommended chime recall, are you having any problems with your MyLink? If not, then why would you consider going through the hassle of replacing it and paying that deductible cost?
If your MyLink seems to be working fine, then I don't recommend doing the recall and risk any other resulting problems caused by the update. As you can see, many of us have done the recall and regretted it.
The warranty is with Fidelity Carefree Car Protection. It's simply a Mechanical Failure Service Contract. So that being said, after further analysis This warranty has nothing to do with a radio failure. So definitely something screwy is going on.
They are saying that the radio will not accept the firmware update, period that's all they said. That, and this whole idea that I need a new radio to finish the update and to fix and complete the chime recall
warranty repair. The Mylink system is part of the radio/phone inter-connectibility etc. right? That's my understanding. The chime is also part of the radio in some indirect way as the chime is produced through the speakers. That's why the recall was being done. The DOT? says there is a problem and the manufacturer is responsible to fix it. This recall came before I was visiting this site and I did not know exactly what this thing was about. The wife drives this car 99% of the time, I don't want her in a situation where she could be stranded or whatever. ALSO there was this problem with a "no Crank" scenario involving the chime , key in the ignition for a period of time with nothing on like the radio etc. (like if she was waiting for the kids to get out of school).The electrical system would go into 'power save/ slow drain protection mode, and the car wouldn't crank. (Chevy Engineers explanation). At the time this was happening we didn't know about the Lock / Unlock the door lock 3 or 4 times trick to take it out of this mode. So I didn't want my wife having to call a jump / tow truck every time this happens.
They said that this 'could' be the cause of the problem, the recall "could' fix it, so thus the reasoning of getting it done. I didn't think it was some convoluted thing where the whole damn entertainment system was involved. The recall doesn't even mention a radio/mylink update in the basic procedures explanation.
So yes I would agree now that I have read here about the problems caused by this recall.. Don't do it. but

the radio, I have discovered is lamed. The radio fm/XM, works but the blue tooth and other features are busted.
So that's the deal, the third party warranty has nothing to do with this repair. I should not have to pay out anything for a 'warranty' recall repair. Certainly shouldn't have to pay if in fact there is a problem with equipment connected to the recall that is making it impossible to complete the recall, No? I don't think this is an unreasonable assumption.
Now they have busted my entertainment system trying to complete that recall and I should have to have my dash torn apart and radio replaced when there was nothing wrong with it and they botched the software upgrade?. I know this can be tricky with any computer. If there is a power interrupt during a Eprom or Cmos upgrade on a PC, poof your done, unless the system provides a double image protection feature. I am stuck, and it looks like I am going to have to call Customer Service and see if they can sort this out. I already popped for a bogus cooling system repair @ 400 bucks when in fact it should have been a simple o-ring replacement, buts that's another thread.