The ONLY thing the dealer said so far is that they thought the AC pulley froze/locked. But they suspected there were several/many(?) other side effects. OK, so maybe that burned up the main belt but not for all the smoke?????
Well, a seized A/C compressor would do it, and have about the same effect. Did the smoke smell like rubber, oil, or something else? What color was the smoke (white or black?)
If that happened, it is new or rebuilt engine time. Big reasons for replacing belts on a regular schedule. Lose one and you can lose an engine.
This is your cue to get out of there REALLY fast. It sounds to me like this happened fast enough that once the A/C pulley is spinning, three bucks of engine cleaning in a car wash is all you need.