This is news to me, and contrary to a GM memo from last year that basically stopped the automatic replacement (rather than repair) of engines as of sometime around April, 2006. Maybe they subsequently decided that having the dealer service departments tinker with the innards of these babies is a bad idea. :surprisedThere arent any TSB's or anything related to LS7 failure but one thing I am aware of and seems a little, well, odd to me....is that GM is having dealers ship complete Z06's back to Bowling Green to have engine replacements performed, the dealers are instructed to do no work to the car if an engine replacement is needed except prepare it for shipment to Kentucky.
This includes 2007's. This is odd because typical GM protocol has engine replaced as complete units for 6-10 months after their release with no internal work allowed until the engineers can see a few failed parts, then the restriction is lifted and all work is done in dealer. This goes far beyond that as the engine should be out of the "quarantine" period, and Ive never heard of shipping anything back to the plant to have work done, especially on an almost 4 year old platform and with a second year engine.