Headlight level mystery

[ZZ-8]

I was in a minor accident and just picked my car up from the body shop this week. Both headlights were replaced as part of these repairs. While driving home a few nights ago, I noticed that the driver side headlight was pointing waaay low, like 10-20 feet from the car low. I thought that it would be a relatively simple adjustment I could do on my own. I tried using a screwdriver in the adjustment hole, but the only screwdriver I had that would fit wasn't strong enough to move the gear without bending. So I instead removed the airbox and adjusted the bolt head with a crescent wrench directly. After quite a while of turning, I notice the headlight stopped moving and it was only halfway between where it started and the level of the other headlight.
At that point I gave up and took it back to the shop to have them take a look. They told my that the adjustment bolt was no longer connected to the headlight (apparently my wrenching had eventually unscrewed the bolt from its threads). They even showed me how the headlight had "dropped" as a result (pictured). They said they could probably call it in as a defect and have it replaced, so not worried about that. I was just wondering:

• Was it actually defective? As in, before I "broke" it? It was pointing at the ground before I even touched it. I took a picture when I first picked it up and it does look like the housing part is visible there as well. Hopefully this is moot and it will be replaced regardless, but I want to know just in case.
• Is there a easy fix that I am not seeing? Could the initial problem have been anything else?

The visible "collapsed" housing circled, passenger side for comparison:




The pic from when I picked it up:

 

[MerlintheMad]

Impossible to say, from the pics. But your description of adjusting does sound like a failed part to me. It's good that they are working from that angle rather than blaming you.