What "sealed unit" are they referring to??

If it's the lever assembly, it makes some sense that they'd have to replace the whole unit. But, though I'm certainly no Prius tech, I find it hard to believe $700 is required to replace it, again assuming that's the only problem. I've had my dash out and I've seen the lever assembly from the back side. It's a small mechanical device with a wiring harness connected to its backside, nothing more.
If the car is shifting properly, you can choose to live with it. Or you could try to find a used part. Meanwhile, I suggest posting on
PriusChat. There are substantially more Prius owners active there than here. Many are more knowledgeable about the technical/mechanical side of the car than I, and one or two are actual Prius technicians. They are extremely helpful with assistance diagnosing problems and suggesting remedy options.