Most of us haven't any experience with having our weapons stolen and recovered in the commission of a crime. There are enough stories out there that folks tend to go with and/or embellish them - much like they do about hearing rumors about Palin or Cruz.
From your tale of woe, it may be that they think there is possible relevance of the gun as evidence which may be used in the suit against them - weak, but who knows? It could also be a conspiracy as some will tell you - the DA hates all guns and will go IRS to ensure you won't get it back.
So many States and separate cities and counties among them that nobody can give you a good answer without prior experience in same location.
Since the worth is low enough that you won't hire an attorney, the old adage, "Beggars can't be choosers" may apply - you are getting what you paid for as far as the "legal advice" goes. You tried, it failed, get over it without castigating those who offered their opinions.
Hope it works out and you get your old friend back in the personal arsenal.
FWIW, the city holding the gun recently paid out $22,000 for infringing on the rights of someone who open carried. Doubt they want to go down that path again.
‘Since the worth is low enough that you won’t hire an attorney, the old adage, “Beggars can’t be choosers” may apply - you are getting what you paid for as far as the “legal advice” goes. You tried, it failed, get over it without castigating those who offered their opinions.”
Well said.