UPDATE:
I'm happy to report that Wildkat has generously offered to exchange the grapple, for which I am very thankful. I'll be updating my first post as well but have offered to incorporate any recent or future design changes to the grapple in this thread as well since this will most likely become resource for people using the forum to research a grapple purchase. Standing behind their product is a very good sign and using these failures as a tool to innovate and improve the product will be even better. Check back a little later for the details.
I'm glad they are stepping up and exchanging it for you. Is this one going to be a updater design?