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2011 Equinox 1LT V6 3.0L FWD 174.6k miles
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I guess water is a really bad thing to find in diesel fuel, but you were low on fuel and parked on an incline. Couldn’t that have been the reason for the no-start? I think I would’ve tried lugging a 5-gallon jug of diesel over to the vehicle and dumped it in before heading to the Dealer.

But assuming the Dealer isn’t trying to take you for a ride (that never happens, right?) ... if it were this easy to destroy Diesel engines nobody would ever buy them! Aren’t there filters on these fuel systems? And if you get a “Water Alarm” on your dash ... that’s the end of the vehicle??? C’mon.

Were you doing anything unusual with this diesel - like burning bio, or getting your fuel from alternative sources?

Were there any symptoms or related repairs leading up to this failure?

If no, no, and no ... I’m not buying the Dealer’s prognosis. I’d try to find an Independent mechanic familiar with diesels who’ll give you more favorable outcome than a $10k fuel system tear down.
 
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