I don't think we are getting the full story here.
Why would the officer care about other damage to your car if the other party is accepting full responsibility?
Did the same officer inspect both vehicles? Since you both separately reported to a police station (did you even report to the same one?), that seems unlikely.
Why does it matter that the guy in your original post now has a witness? It doesn't, unless he is claiming something contrary to your story.
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