@Jigisha0 Yes, the policy is ridiculous - I understand why they want you to document before the next guest checks in, but time and date stamped photos, as long as it's before your check-in time for the next guest, should be sufficent.
I would suggest you don't waste your time trying to fight this, though- you won't win, because you didn't follow their stupid procedure. It's designed purposely to make claims difficult.
How is it that you only saw the damage an hour before check-in, though? You or your cleaner or co-host really need to assess the state it was left in soon after guests check out.