I don't think you would have had any problem using Pennzoil's Mercon-V, that's what they used when I had my ST tranny flushed.
Most Lube centers, etc, will have a specific brand of oil and fluids they use and either will not allow you to change, or if they do, you will pay a higher price for the service.
I have a local Kwik-Car lube center that I have used for years, I even know the lady who owns the shop. They only charge $54 for a tranny flush, but they charge $85 if the transmission requires Mercon-V, because it is more expensive.
I also question why they require 16 quarts of fluid for the flush? Kwik-Car only requires 12 quarts to do the flush. It sounds like they are wasting about a gallon of fluid. The transmission only holds 10 quarts, and 12 quarts should be enough for good flush, but 16 quarts sound like they are going overboard at your expense.
...Rich