@gravdev: That factory reset screen is a built-in safety. If the device has tried to boot several time and nickel has not been started successfully, this screen will be displayed. I would suggest doing the factory reset as requested and seeing what happens. If you don't get to the point it starts the setup, then send it back as faulty.
A factory reset whips almost all the device. If formats the root partition and the user partition. The only part it doesn't touch is the recovery position. And the only places there might be any information be about you is the root and user partition. The previous factory resets should have removed any identifying info and KSM. Or this one should. And if it doesn't, there is no way for you to do anything more. And would be very hard for anyone else to.
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