Hardware fault vs. software
Yes, I agree returning or reloading 100% should have corrected the issue if some s/w glitch. Thus, it maybe more on the h/w side. Either a true failure or possible connection problem. Since, this is an AIO type PC, a tear down to check those connections, even reseating the touchscreen related areas are required. If that simple fix doesn't do it then that further suggests some small PCB or related item has failed. If there is some warranty, then use that before any actual tear down to NOT exclude you from warranty service. Otherwise, user or repair shop fix. This is not a common item to find parts for, though if you know what to purchase to resolve getting anything besides any PB factory stocks. Google away if you decide to repair what it takes. After doing the above it maybe more h/w than anything, you know what's cut out for you.
Provided during anytime of the OS reload even just the 1st restore not the final recovery and updates, etc., never produce any touchscreen action, then again it suggests possible h/w fault. Review your manual or any location of touchscreen area to check. At present no manual myself to review, PB is very hidden support.
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