I know nothing about cars but I asked chatgpt...
If the garage means:
"This part commonly fails on this engine." That's different from a manufacturer defect. Many parts have common failure patterns, especially as cars age, and owners are generally responsible for the repair once the warranty has expired.
"Å koda has acknowledged a manufacturing defect or issued a recall/service campaign." In that case, there may be circumstances where Å koda would cover some or all of the cost.
An oil separator (often part of the crankcase ventilation/PCV system) can cause a variety of engine management faults. If it fails, it can create incorrect crankcase pressure or air leaks, which may trigger the engine warning light and put the engine into a reduced-power mode. So the diagnosis is certainly plausible.
Is £330 reasonable?
For a 2020 Škoda in the UK, around £250–£400 for replacing an oil separator (including parts, labour and VAT) is within the range I'd expect, depending on the model and engine. So the price itself doesn't immediately stand out as excessive.
If it's a known issue
It's worth asking the garage:
Is there a Technical Service Bulletin (TSB) for this issue?
Is there any goodwill contribution available from Å koda, given the car is only a 2020 model?
Has the car been serviced according to Å koda's schedule?
If your car has a full Å koda service history and isn't very high mileage, it's sometimes worth contacting Å koda UK customer services and asking whether they'll offer a goodwill payment, even if the manufacturer's warranty has expired. There's no guarantee, but it can be worthwhile.
Could you tell me:
Which Å koda model is it (Octavia, Kamiq, Karoq, etc.)?
Which engine (e.g. 1.0 TSI, 1.5 TSI, 2.0 TDI)?
How many miles has it done?
Was the repair done by a Å koda dealer or an independent garage?
That will help judge whether £330 is fair and whether there's a realistic chance of getting Škoda to help with the cost.