There was an AHJ that refused to sign off on a job my buddy had done because he used drywall multi-purpose screws to mount the various boxes throughout the job instead of #8 wood screws. He refused to OK the job until the guys pulled all the DWS's out and replaced them, claiming that they violated the 1/4" interior obstruction requirement of the Code for mounting hardware.

He's also the same guy who gave a verbal OK to bury an undergound yard lighting circuit as long as there were inspection holes left open along every run longer than 25'. When he was called back for the final he flew into a rage, denied ever approving the "hole" method and demanded that the whole thing be dug up for his viewing.

They called back two days later and the guy OK'd it without even leaving his truck.

In most cases the decision is made to simply abide by the AHJ's decision rather than onject, due to (as others have said) the delay in completion and cost of representation, as well as the
factor on the part of the AHJ that would have every other job in that community gone over with a microscope.