[Almaz]

Volvo of Palo Alto changed the oil and said to come back every 2K miles for them to check levels.

The service advisor told me word for word "no engine is made perfect, and some oil consumption is normal. I burn a quart every 2500 in my Volvo and thats totally normal"
They won't open a case with Volvo until they have diagnosed the issue.

I call complete BS!? Any advice on what to do if thats the response I'm getting?

For now I'd say play along and take it back in 2000 miles. Let them document the oil consumption.
One quart in 2500 miles is too much and is a bunch BS in my opinion. I would not make a big deal of it, yet. Wait till they verify how much it's burning then hold your ground and demand they fix it if it's abnormal.
From all I've seen I have no reason to think they wont fix it. They might need a polite but firm push in some cases.