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The dealer people are correct in that AWD doesn't require DSTC as you then 4 driven wheels. I highly doubt they'll change that option, using it for any AWD car.
I don't know about all other AWDs but I remember that years ago, Suburu thought the same way. Their AWDs also didn't offer traction control but their FWDs did. They too said that AWDs didn't need it.
BTW, it's not really "stabilty" control, it's traction control and it controls wheel spin on take-off from a dead stop only. All Volvos have ABS however.
Even on a snow covered road, you don't have traction problems taking off from a stop with AWD.
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