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Had same problem.
This worked for me:
Assuming that you have a PC.
1) Create a blank file in Notepad titled DO_FACTORY_RESTORE
Remove the .txt extension from the file you created in File Explorer
2) Connect the Kindle to your computer using a USB cable.
3) Copy the file you created into the root directory (don't put into any folder) of your Kindle.
Do a reset of the Kindle by holding down on the power button (20 secs, not the short restart) till the Kindle restarts. It should (fingers crossed) perform a factory reset.
hope this worked. You will of course have to reconnect your kindle to your account and re download all books
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