Hi, I’m the guy who managed to snag this. Description says that “Batteries are tested to function at minimum 85% capacity,” but I just turned it on and the Battery section on the iPhone’s settings is showing 80% 
I understand. Sorry it happened to you!!!
I had that happen with an iPhone SE 2020 that I ordered in Dec, 2022. Woot was very fast about getting a label out to me and refunding when they received the phone.
I don’t know if they check those things in-house or rely on the supplier. Or maybe it’s some of each?
I’ve had different things happen over my 15+ years dealing with Woot, but I’ve gotten some extremely good deals as well. So I guess that’s the trade off.
I just wish it didn’t happen because it can be an inconvenience at times to go through all that and then have to remember to take it to UPS.
But I’m still here shopping! 
Get ahold of Customer Service and let them know the situation–I’ve never had any problems getting a prompt refund or even a replacement item when/if available.