Dealer is trying to rip him off. No doubt.
Carbon removal is quite easy without dismantling the engine.... depending on what route you take. Lubro Moly Venti Sauber is one technique... you inject them through the intake manifuld via vacuum hose... inject them slowly so engine doesn't sputter too much... when almost the end... let it suck in fast enough to sputter the engine and shut down engine... letting it soak the carbon... wait like 1 hour and then start it up... this is the old way.
The new way is to use a fogger... same technique except it is all automatic... you run it until it is fogger is empty. This is also done at the quick lube place... they advertise it as carbon removal... your friend should probably do it twice. This should clean out the cat at the same time and would cost like $90 each time... Far cry from what dealer wants.
Your friend will have to fix that gasket... no doubt and he might have to check out the ignition coils to make sure they are good... at least change the coil boots... the one that goes over the spark plugs.
I'd advise synthetic oil change too.
After your friend did the above... he should drive on highway for a long trip... 2 hours round trip on highway to clean up all the gunks... using good premium fuel. The more time he drives on highway... the cleaner his engine will get.
Then get the car inspected again. If he passed, he scored a homerun. If not, the emission should be alot better than before.