This is correct. If the battery or hybrid system completely fails, the vehicle will no longer drive. At bare minimum the starter/generator motor in the transmission is necessary for starting the engine as well as facilitating the operation of the 'continuously variable' aspect of the eCVT and allowing the engine to properly transmit power to the wheels. This starter/generator motor is powered by the high voltage battery. That all said, there are plenty of failure modes up to the point of complete failure where the vehicle will see the battery is worn/degraded and may not be reliable to use for EV operation or higher loads but will gracefully fall back to hybrid operation or full time ICE operation and still be drivable but with reduced functionality.
With how most dealers are clueless on these cars, I'd always go for a second opinion when they call for costly repairs like this. At the very least, getting any codes read and posting to a forum like this with more experienced owners who can hopefully narrow things down or confirm/deny the dealer's findings.