That is indeed the adaptive cruise control warning light. Try switching in on and off.
If VW state they need to charge you a diagnostic fee of £180 then insist this is refundable in the event of a fault as clearly you are within the warranty period. If not reject the car and see what they say!

 

Ive been advised of the £180 fee for a couple of things on mine. Rear light clusters warning about brake light issue and then Travel Assist not active. It's to cover their costs if you're being a berk and there's nothing actually wrong.
All under warranty, but if you've only just bought it you should be fine. And yes, threaten to reject it if it's not sorted

 

If the car has been bought from VW, it should have a warranty irrespective.

All secondhand cars have a minimum warranty from a garage unless you waived your rights to one.
Phone the VW dealership you bought the car from and explain your situation.

You are within your rights to reject it, but the garage may want to repair in the 1st instance and there should be no diagnostic charge, the light obviously has not gone out after restarting the vehicle.

If you have a colleague that has VCDS or OBD Eleven, there may be a code, but under NO circumstances, clear the code

If it’s still not fixed, then your rejection rights are even greater

 

A repair under warranty can be done at any VW dealer but be aware that rejecting the vehicle may mean going back to the VW garage that sold the car irrespective of how far away it is unless a local dealership has a replacement you would prefer instead.

 

Update - VW have found the front assist camera needs replacing at a cool cost of £1000. BUT couldn't claim it under the used approved extended warranty. They found someone already ran diagnostics before I bought the car and before the extended warranty was put on the car. Rang where i bought the car from (VW dealer) and thankfully they have agreed to front the bill for it. Hopefully get it booked in soon to fix.

Side note i forgot where i seen this mentioned, but i got VW to clean my car and they did a poor job of it

 

If they insist on charging £180, reject the car. It is up to the stealer to collect the car….I know, I have just rejected my mk3 Tiguan. Don’t give them an inch!

 

Standard corporate tat. My car had same demand. They sucked up the charge when the fault was as confirmed.

 

Standard dealer tat. They find a fault no fee charged. Selling dealer should have performed these checks prior.