I gave them my account number and they could see I had money to cover the check. Besides, it was a check from their bank.
I think it is a new government policy and they were simply obeying.
Maybe; I’m certainly not defending them. Checks written to “cash” become bearer instruments and can be negotiated by anyone in possession of it; I wouldn’t want one (as you mention, the whole transaction is tracked through your account anyway).
You were educated by the bank as to the proper for transacting a third party draft made to cash. You took offense but received the money after enlightment and following the proper procedure.
The endorsement must be the same as the payee and you could not endorse as Cash
Accepting a check drawn to cash by a third party was not a proper transaction to begin with.