Given that it is basically impossible to do code review for less than $1k of staff time, your customer is signaling that they denominate *wasteful friction* for getting this deal done in the four to five figure range.
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Just one?
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I could definitely envision cases where it is two or three but I'm assuming they had a somewhat plausible ~$50k ACV quote or something prior to that ask.
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Make the price almost painful for the customer, offer a white labeled private server (that you manage) before offering up code. If you get nothing out of the deal aside from more money, don't do it. You need more optionality for your future: partnerships, leads, etc.
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