Used to work for a local Toyota dealership and dealt with my fair share of them, although I'll admit it has been a couple years.

If you're being honest about not abusing the vehicle then this list just doesn't sit right with me. I'd be pretty skeptical of needing both new LCA's, an axle, and a strut on the front without having hit something substantial enough to be noticed. Highlanders are pretty sturdy.

Alignment will always be recommended with suspension work.

Interpreting the VA inspection manual on failing shocks almost isn't worth the hassle. Feel free to look up that section before you head in, because chances are good that they're going to say that it fails when it doesn't.

If it were my car I'd ask to see it up on the lift and have the inspector explain why they failed the components. If they tell you something that sounds silly, it probably is. The inspection is a safety inspection and each failed component should fail because it causes an unsafe condition where they vehicle isn't roadworthy. If it doesn't sit right with you take it elsewhere. They'll put a rejection sticker on it and you're free to take it wherever you want. You'll have to pay the new shop to inspect the vehicle, but there's nothing stopping you from doing it.