There could be several factors at play with your dealer and Aegis..
Service departments want to make money, first and foremost. What would Aegis pay them for the repair on your bike vs. what the dealer wants to charge you? If they know that "by the book" Aegis would pay them $700 to do the repairs needed but they can try to charge you $1,200 which way do you think they would go? For the extra $500 it's not unreasonable to think a less than scrupulous service department might try to con you with the bad gas story and also feed that line / misrepresent the situation of your bike to Aegis so they deny the claim. Now, Aegis says "no", they're the bad guy, and you're forced to spend $1,200 to get your bike back on the road. I've seen it happen first hand at a sly motorcycle dealership in Michigan.
Where does the money come from to repair your bike with a claim through Aegis? Aegis itself, right? Maybe not.. I worked for an automotive group in Ohio which owned 5 dealerships. They sold 3rd party service contracts on ther majority of their used and even their new cars. Here's where it got weird: Customer pays $2,200 for a service contract. The majority of this $2,200 the dealership kept in an escrow account. When claims were made against it, if approved, money would come out of this account. If the claim wasn't approved, the customer pays for the repairs. It was a large source of profit for the dealer group as often they could legitimize a claim denial...customer didn't maintain the vehicle according to the recommended service schedule, customer abused the vehicle by doing X or Y, etc. I have no idea if that's how many 3rd party plans work, including Aegis. I just wanted to put this out there to illustrate how crazy some of these relationships between 3rd party service contracts and dealers can be. What's the theme with this scenario - making additional profit is primary, providing peace of mind to the consumer is secondary.
Having seen and experienced the above, that's why I recommend getting an attorney involved to help sort this out.