CE 1113 Setting/Resetting difficulties

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Just purchased a CE 1113 4 button ana/digi chronograph with supposedly a new battery. This replaces a TAG automatic that I foolishly sold years ago.
I looked up thread from some years ago that referenced this series and began setting the watch. All went well for setting time, month and date. When I went to the chronograph reset procedures, the watch doesn’t behave according to the manual. With crown pulled out to #2, I haven’t been able to set hours, minutes and seconds to zero. White chronograph seconds hand rotates continuously, however 1/100 red hand resets ok.
A flashing number appears in the left hand window and AD appears in the right hand window. Watch appears to be keeping good time. Could this be a bad battery anyway? If this watch is bad, I can still send it back. Any help appreciated.
Paul Brown