If the power LED flashes, the screen should be updating too. If it didn't work at all (defective microsd or whatever), it probably wouldn't flash the LED as that is already controlled by software as far as I'm aware...
So very likely it's physical damage to the display. While this type of damage often causes visible artifacts, we've also had cases in this forum where it was completely invisible on the front side of the display but it was broken regardless.
You've already tried the available soft reset methods; if you decide to open it to access the SD card, be very careful when removing the front bezel, as there is glue all around.
Once you have it open, maybe you can also check the display substrate for damage.
Old posts of mine:
https://www.mobileread.com/forums/sh...66#post2998466
https://www.mobileread.com/forums/sh...84#post2998984
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Also if you extract the MicroSD and the fat32 partition only has an empty filesystem, with .kobo folder, it also means the factory reset was a success and the problem is with the display.
It could be a loose display connector although there should be no way for this to become loose ever...
These displays just break very easily :-(