Hi & welcome to the forum.
It would be difficult to make a definitive comment regards the corrosion & bush without bebefit of actually viewing & assessing the components.
Garage number 2 is correct steering racks assemblies do not have an inner track rod end as such, the construction is generally a captive joint, and as such is not listed as a component requiring examination during the MOT.
Excessive wear in these components generally results in excessive free rotation of the steering wheel. The tester can only assess whether this free movement exceeds measured limits before the steering mechanism starts to alter the angle of the front wheels.
Section 2.3 of the MOT inspection Manual – Steering Play – gives more information.
You may wish to discuss this, referring to the above section of the Manual, with garage number 1 & request an MOT appeal form. (VT17)
