Driving on Highway at approx 70mph, lost propulsion and speedometer went to 0. Came back after approx. 5 seconds. After exiting highway and stopping, clear knocking/clanging noise from engine. GM states full engine replacement needed. This is a 2025 6.2 V8, thought these issues were fixed?

We have 8,625 miles on our 2025 Suburban. We were going down the highway when began to hear a unfamiliar noise. We pulled over into an error to inspect and didn't notice anything under the vehicle, which we thought might have cause the noise. We put into drive and went less than an 1/8 of a mile and our suburban lost acceleration and stopped. It would not start and couldn't not be moved, until roadside assistance took it to a Chevrolet dealership. The dealer stated the engine seized up and needs to be replaced. We were fortunate we were not going any more than 20 miles per hour and were not on a major highway.