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Dealer says "planetary gear" is broken - wants 1600$ + tax (Canadian)

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Hi all,
I have an issue on my 2014 C300 W204 where when I turn my steering wheel all the way to the left or right and drive (for example in a parking lot), the car vibrates. The dealer says the planetary gear in the transfer case is damaged and this requires immediate attention, or else the transfer case and transmission can be damaged. The cost for the part + labor is 1600$. (See image from the report they gave me)
screen_shot_2019_05_13_at_6_49_48_pm_3c2
Does anyone have any experience with this issue? Is this something I need to worry about? So far the vibration is the only symptom, which I don't really mind. But can it really degrade into transmission damage? I don't really drive much (3000km a year).

Thanks

Screen Shot 2019-05-13 at 6.49.48 PM.png

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