Faulty 14" Spectre x360 lid switch design?

[antonio2001]

I am now on my second 14" Spectre x360 (14-EU0097N) and am wondering if the lid switch design is faulty.

When closed completely, the switch seems to think the laptop is in tablet mode so it never locks and the screen stays on (i.e., I can see the screen leaking light). It also does not immediately sleep when on battery. When I put a mouse pad between the lid and the trackpad as a spacer and close it, it behaves like it should. If I execute the following while plugged into a dock with one monitor I will get two displays when closed completely and one display when closed with a spacer:

    Get-CimInstance -Namespace root\wmi -ClassName WmiMonitorBasicDisplayParams

Beyond being a security annoyance and not going to sleep when I want on battery power, when plugged into the dock, the scaling stays the same for the laptop screen so all the icons on my monitor are huge. I realize these have Hall effect sensors at the top left of the keyboard--when I put a small magnet there, the laptop locks and screen turns off. Notably, when I put enough paper as a spacer for the lid and base to be fully parallel, the screen behaves like it should. Everything here presents like the orientation of the sensor is either chronically installed incorrectly or the design is faulty. I'm still within 30 days of the original purchase, is there any hope of a 3rd unit working correctly? I really want this to work because I've had a 13-ac013dx that has served me well for the past 8+ years.