The "Free DVR for life" offer only applies to Multi-Room DVR, not the standard DVR. Also, the offer expires if you move, even if you keep FiOS service.
Next time, don't call them asking for a resolution; instead, use Live Chat. The wait is shorter, and you will have a timestamped record of anything you discuss. If they promise to fix it and they do not, you should lodge a complaint with your local franchise authority, who will compel Verizon to work with you towards a solution.