The $38 'free' hostel breakfast that almost got me banned in Lisbon

I booked a hostel in Lisbon that bragged about free breakfast, but the catch was you had to show your room key to get anything. I lost my key card on day two, so I asked the guy at the desk for a replacement. He said no problem, but then charged me $38 for a new one, which is more than the bed cost per night. I told him I'd just skip breakfast and wait until checkout to settle it, and he got super weird about it. Turns out the 'free' breakfast was subsidized by key replacement fees for idiots like me. Has anyone else run into hostels that hide costs in lost-item penalties, or did I just find the weirdest scam in Europe?

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