Would this be an OOS violation? Missing lugs and loose lugs yes of course OOS. Unless the rim is cracked why would they have to replace it? I think this shop pulled a fast one on this very green individual. He should have done a better job on his pre trip to catch the loose lugs. He makes it seem like the shop was protecting him from a castrophic failure of the hub assembly. Am I wrong or was this good practice by this shop?
Why do you think the shop pulled a fast one? The hub tabs are broken, so it needs a new hub. The rim also needs to be replaced, the lug holes and center hole is damaged so it will never ride true even with a new hub. This driver is lucky that the tire did not fall off and no reputable shop would tell him it's OK to keep running with that hub or rim. The only fast one I see is trying to charge $439 for a standard Alcoa wheel, they're under $300 at most parts places.
That rim is done. Wheel probably wasn't torqued correctly, causing the lugs to back off. Then because the rim was free to move, it beat the centering tabs off the hub and chewed the rim up.
If you don't know how to pretrip or drain the air system perhaps truck ownership is not the right move. Oooo $1.74 a mile.... yay!
Here is what I would have done if it was my own personal truck. Move that rim to the drive axles, and bring one of the drives up to the front. That style of rim is called hub piliot, it centers it self by the hub, not by the lug nuts. From what I could see in the video, that rim was still good. Everything else needed to be replaced. Studs, and hub. I worked in the truck tire business for 7 years both highway, and off road heavy equipment.
The rim is damaged at the center hole too. It could be mounted on an inner drive if it was positioned to get the tabs on an unworn part of it for a temp fix to save a tow, but it still needs to be replaced.