UPDATE :
My wife took the car to the dealer we bought the car from on Thursday for an hour. They didn't mention a stretched cable, however they did mention that the cable was attached as it should be, so probably a mechanism issue that's caused it. But also the part isn't available separately so a complete seat base would be required as the previous dealer said. The service manager called the warranty provider and explained to them, they've asked for a video of the issue and they may want to inspect it themselves before agreeing to the claim. I'm still waiting for the dealer to call me back and let me know what the outcome is.
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2018 XC90 D5 R-DESIGN
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