Report them. ACLU, ADA, AZ DHS
They're service sucks there I'm not surprised. Call the proper authorities to handle this discrimination complaint.
They have obviously made a mistake, possibly due to the language barrier. It's a common problem (Google 'service dogs Chinese restaurant' and read story after story). They probably either don't understand the law or they understand the law but are worried about the stigma. Hopefully they get the message just from your review.
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