The drywall will eventually dry - but it won't be 'structurally' good after that.. i.e. it won't be flat and it will be crumbly inside instead of solid. I don't know how long it will take for the smell to go away, but Clorox and a coat of paint will just trap the moisture behind the paint - so the bugs will stay longer. Even Clorox begins to smell foul if it doesn't have air.
At the very least, they should cut a hole in the drywall to let the moisture air out (which will smell even more for awhile) and then patch the hole. (That's assuming they refuse to replace it altogether.)