For the first time ever, I got a REGENERATION NEEDED warning yesterday. There was no CEL, but rather, a new icon - REGEN NEEDED....granted, I have an AID, so maybe all you get with the standard instrument cluster is the CEL (?)).
(Visiting friends in a small town where, when I do drive, it's only like 2km at a time - argh; I knew that wasn't good, and was hoping I'd have the opportunity to go out longer before this happened, but alas, no.)
Anyway, I was pretty sure what the solution was to go take it for a gallup out on the highway. So I did that and it went away after I shut it down and turned the car back on again. So, if that's all that's needed....obviously you can do that for yourself. And clearly, not worth $290.
But while reading up on that warning a bit later, I read a thing from a VW dealer's website that stated that if you disregard that warning and continue to build up soot in the DPF, it gets to the point where there's to much for the regen to successfully burn off, so then it needs to be taken apart and cleaned or replaced. And it explicitly said that this was NOT covered by warranty.
Now, given the emissions warranty extension and all that, I'm pretty sure you can make a pretty good case that this issue falls in line with that; if your dealer is still reluctant, then (a) try another dealer; or (b) if that's not possible or you get similar resistance, contact VWoA and start ruffling feathers there.