Sounds like a very quick way to build a negative brand image.

You can frame it in a more "brandable" way, such as calling it a support contract.

If the support contract came with the refundable part, I'd be more enticed to purchase said contract. I so rarely have issues that require support a $25/per incident would still be so so much less than the typical prices of support contracts. To then have that $25 be refundable when it turns out there's an actual issue with the product would make it a no-brainer. After all, if your product wasn't broken, I wouldn't need the help of support. Which means you sold me something that doesn't work.

I really like the idea

I bet $1000000 that every dumbass would push that button.

Dumber people even quicker than others.

As long as it’s priced properly to compensate the technical support advisors dealing with the stupid tickets, why not?

Checks would probably bounce.