破損 and 故障: physical damage and a failure of function
Compare damage to a box corner with a washing-machine malfunction. Damage and functional failure may overlap, and inspection alone does not establish an absence of problems.
Read physical damage with 破損
破損, read はそん, means damage or breakage. 輸送中に箱の角が破損した。 says that the corner of the box was damaged during transport.
The damaged object is the box corner. This scene focuses on physical damage rather than reporting whether a particular machine function works.
Read a malfunction with 故障
故障, read こしょう, means breakdown or malfunction. 洗濯機が故障して水がたまらなくなった。 says that the washing machine broke down and stopped filling with water.
The malfunction and the change in water filling are both stated. Physical damage and functional failure can occur together rather than forming mutually exclusive categories for every object.
Separate inspection from its result
部品の破損がないか一つずつ確認した。 says that each part was checked for damage. Checking is completed, but the outcome is not separately stated.
出発前に車の故障がないか点検した。 says that the car was inspected for malfunctions before departure. Completing an inspection does not by itself establish an absence of malfunctions.
Does an absence of damage to the exterior alone establish that a machine has no malfunction?
Show the answer and why
No. Physical damage and functional failure have different focuses and may overlap. Whether the function works needs separate information.