Wheel bearing maintenance
Personally, I really don't like the zirk grease fittings in the caps. I like the old way of hand packing and personally inspecting the bearings.
You are wrong about watching or wanting the grease to squirt out, it opens and deforms the rubber seals and helps let dirt and moisture in. When greasing ball joints and tie rod joints, you should put enough grease in until the rubber seal swells up. By pumping grease into the wheel bering cap, how does anyone really know whats going on. Like- (1) did, I put enough grease in; (2) did, I put too much grease in and wreck the seal causing a pile of grease to get on the drum & brakes; (3) as your mechanic found, is the grease in there bad & can I push the good grease to the bearings with out blowing the seal. Also, I would never use a power grease gun, only a hand gun to pump grease into the hubs.
As alot of Rv'ers, boaters, & horse trailer people go by the believe of, out of sight-out of mind, and then wonder why they have axeles twist off, blowouts, dead batteries, etc,etc.
You dealership must have some good caring mechanics, your lucky. I hope they are going to replace the bearings and seals. Read my post on my brakes and my son's Sunny Brook' wheel bearings.