If the factory reset does not return your Kobo device to full functionality, then it is a problem for Kobo to correct, none of the alternative software has any effect on the device at a level that the factory reset returns the device to.
The AuraHD's screen is connected to the PCB by a flat ribbon cable that is held in place by a zero insertion force connector that is clamped down by a plastic lever. It is possible that the ribbon cable was not properly clamped during assembly, and has worked loose.
Luck;
Ken
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