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This became a legal matter once they submitted a quote to you and you then agreed to the price for the labor, presumably in writing. So they are scared that you are going to sue them now for breach of contract because someone either make a very big mistake in quoting you, or the subcontractor decided to milk the project for twice the agreed on amount. In either situation, it makes HD look very bad and if you have a written contract, they are worried you are going to sue them.
So they are trying to quietly back out of the deal and refund your money and put in a little to boot to make up for any damages.