I sent it in for an exchange. If the next one actually works I will certainly update my review. I post this only to give people a heads up in case this is a bad batch instead of just a single fail.
Update 1 - the replacement works and updates ok. WIll bump this up to 3 stars while I check it out. Update 2 - Messed with the free content etc and set it up to watch youtube videos on the big screen. Fine. Good image quality and no dropouts. Works fine with the USB power of the tv. Up to 4 stars. After I try it with streaming tv (like Directv Now) will finish review.