[mothered]

definitely in their truck

That's In the truck.

What about at the time It was dropped off at your address. Do you mention that?

I tried to explain this to them and the rep said that at that point, it is considered “theft” thus they need the police report. I tried to explain that the package technically wasn’t delivered at that point but they weren’t listening.

Request a re-escalation on the grounds they're mismanaging your claim.