So are you saying that the first shop didn't change the pickup o-ring?
What I'm saying is, I think it is possible the pickup tube is cracked at the underside of the flange where the clamp at the bolt secures it to the oil pump inlet.
I am not saying they did or didn't replace the o-ring, at this point only the mechanic knows that, especially since they did not include a pic of the tube with the new o-ring installed.
I will also add, if I had done the job, or most likely any decent mechanic had, I would have certainly test run the engine before I reinstalled the front differential to verify oil pressure. There is absolutely no way it had oil pressure at that point, and discovering it then and reporting it to me would have yielded a completely different result, saved them the hassle of dealing with a very unhappy customer, made them a bit more honestly earned money, and saved me the hassle of having to pay someone else to do this repair over.
I would have much rather have bought a new pickup tube, pan gasket, o-ring, and paid them additional labor than to have it dumped on me after I paid and them not be upfront about the condition when finished.
And I paid them cash to boot because of the fee they charge to use a credit or debit card that if memory serves correct was 8%.