Earlier quoted context omitted.
Sears was still doing this when I worked there in 2016. They went as far as to bust open a set of 24 drill bits to replace one of them on the spot.
Wait. Someone returned a drill bit (a wear item) for replacement? Crap like that is why companies have walked away from consumer-biased warranty policies. LLBean had to change theirs as well: https://www.businessinsider.com/why-ll-bean-changed-its-retu...
If they offer the warranty on drill bits, then there's nothing wrong with using the warranty on drill bits. It's not being a bad customer.