C'mon. The tractor is almost new. It's been stored inside. There is NO WAY that there could be THAT much water in it just from condensation unless the "garage" is an actual Swedish sauna that sees daily use.
A little water in the oil is normal, expected, and won't affect the operation of the machine. It would have to end up being pretty much ALL water to affect operation. The neighbor would have had to stuck the hose down in the oil fill port and let it run until it floated all the oil out. If he did that, time for a lawyer.
Warning lights are MEANINGLESS until the machine is running. They light up, sometimes blink, sometimes go out, sometimes stay on, depending on what the programmer decided.
"Bucket with a drop in it" is usually ENGINE oil pressure. The engine's not running, so the engine oil pressure warning light will be lit.
I expect "dealer's no help" means that they didn't give you an easy answer over the phone for free. Unfortunately you may have to pay the dealer to take the tractor in and service it, or at least make a house call to troubleshoot it and see if they can find the problem.
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