To me both feel unreasonable. Option 2 is out of the question completely if you ask me. A brand new phone requiring a repair out of the box is complete nonsense. Option 1 is only viable if they let you use the current phone until they can replace it, and put it in writing that they will accept the exchange no matter the condition of the phone (to a reasonable extent of course like minor marks etc). Cause can't expect you to paste screen protector on a phone you will be exchanging. If they expect mint condition when exchange, then basically asking you to not use the phone and just let it sit in the box for over a month. Also unreasonable.
In this case, if change colour option can get immediately? or still need to wait that long? if still need to wait, then the only reasonable option left is return and immediate full refund. then just order again another colour or what if die die want S25U and nothing else.