Laptop return policy

I bought a laptop at costco 2 months ago. It has a 90 day return period.

I also used the costco mastercard, which gives 90 days of coverage for things like accidental drop and breakage.

I have been having issues with the laptop since I got it - network adapter keeps going out and needs to be restarted. Usb drives keep dropping and need to be reconnected. Fan turning on and laptop freezing when I have only one app running (Firefox with 3 tabs open). And the hinge is already loosening after barely any use (it's a flip).

I had planned on returning it within the 3 month window. Then I went to box it up and dropped it. Of course it landed screen-first. It still works the same as before, but there is a crack across the screen.

So what is the policy here?

I dont think I can return a damaged laptop, but I'm not sure. Do I go through the hassle of getting it repaired through the credit card just to turn around and return it? And what if they take so long to repair it and get it back to me that it is beyond the 90 day return period?

Not trying to screw over the store, but not sure what I should do with this lemon laptop. It cost $2000.

Looking for responses from people who have direct experience with laptop returns. I've asked twice at the store and got conflicting info. Thanks.