damn, that sux mate. weird that your watch has scratches on it brand new.
seems to me like this is an issue with the reseller mate. they may have sold you a demonstration or preowned piece. you should send the watch to a Tag repair centre, show them your proof of purchase and ask them to investigate the scratches and the reseller.
imho, Tag are quite good when it comes to warranty claims (altho it does take a while for the warranty & servicing process to be completed).
as for the software issues on the watch, this is a known issue that can be resolved by a hard reset & re-pairing of the watch to phone. I've had to do the same thing with my last update as well. this issue is more with Android Wear 2.0 than the hardware itself.
Lets hope you can get your issues resolved and you can start wearing & using the watch as it was intended. cheers