I recently had a new steering rack installed in my wife's 98 legacy outback. I can hear broken pieces rolling around when I turn the wheel inside the column and the horn, cruise dont work and the airbag light is on.

Could this have been broken by the mechanic or do they remove that when replacing the rack? I just want to educate myself, not blame anyone. Thanks!

Yeah. If no button on the wheel work, the Air Bag light is now of AFTER the work was done (and also not on before) it is very very possible.

If they turned the wheel a little bit and didnt realize what revolution was the centered one... And then bolted the wheel up to the rack, they might of damaged it.

 

So if your air bag light is now of after the work. Cruise now suddenly doesn't work. Yeah. Take it back and have them look into it.

Sounds like one of the mechanics is a 5 year-old and sat in the seat making car noises while spinning the wheel 400 times in one direction.

If it wasn't broke before you took it in, they broke it and owe you a new clockspring. This also means the airbag isn't operational, they should do it ASAP.

They broke it. The clockspring isn't removed at all during working on the steering rack, but if the steering wheel isn't kept at the center position, AND the rack is not properly centered during installation, the clockspring WILL be broken the first time the steering wheel gets turned all the way.