Hyundai Repair: Short in Altenator--OK to ignore?, negative battery cable, alternator test

Question
There appears to be a short in my Alternator:
When I  disconnect the negative battery cable & connect a [non-powered] Test Lite in series between the cable  & the negative battery terminal the lite goes on. The Test Lite goes out when I then unplug the regulator wiring harness.

Also My Charge Warning lite continues to stay on [more 10 sec] when the key is turned to “On” : meaning the Alternator is not Charging [or there's an Elec System fault]

However voltage from the alternator is within the proper range, so the Auto Zone rep says there's no problem.
I have free lifetime replacement on the alternator from Auto Zone, but only if a bench test shows a fault.

Should I remove my alternator & take it in?

Would the alternator test as bad? Or do I even have a problem?

Answer
This issue will drain your battery while the car is not running.  The alternator needs to be replaced.

It is normal for the charge lamp to be on as long is the ignition key is on and the engine is not running.  This is because the alternator is indeed not charging in this situation.

Regardless of what the Auto Zone rep says, there's a problem.  Alternators can have a variety of problems, and not all involve insufficient voltage.  In your case, you have a shorted diode.  Another failure is inability to put out the rated amperage.  Check your warranty and see what it says qualifies you for replacement.  If it just mentions "defect," then you should be covered.  If it's more specific, then you'll have to meet whatever conditions are specified.

You should check with an ammeter to determine the actual current draw of the alternator.  Check with the alternator plugged in and again with the alternator unplugged.  The difference is the draw from the alternator.  Make a note of this number.  Then, presuming you meet the warranty criteria, remove the alternator, take it to Auto Zone, and demand a replacement, citing the specific defect and the results of your tests.  Whether it tests bad at Auto Zone will depend on the tests they utilize.  Since it causes a parasitic draw, you've already achieved a bad test result on your own.