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Where did you buy the device? Did they provide any sort of guarantee that it wouldn't be DOA? Have you contacted the seller?
I wonder whether it ran completely out of battery when it first tried to update - was it plugged in or fully charged at the time?
Charge from the wall overnight, with a known-good charger and cable. Try the factory reset procedure again from the top, several times, including turning the Kobo OFF before you start (regardless of what is showing on the screen). Also, if there are any lines or artifacts on the screen at all, post a photo.
If the device seems chargeable but is still having problems, you may need to re-image or replace the internal microSD card.
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