Here is the update:

I sent it back to the factory
They took it back on warranty, turned it around fairly promptly
They sent back a test target and a report: Cleaned old grease, PASSED, the target showed 1.3" groups with 286g S&B ammo

I mounted my inexpensive Walmart Nikon 3x9 and took it out
I shot PPU 286 and got 1 1/4", 2220 fps
Hornady 286 same 1 1/4", 2260fps

then I ladder tested some handloads, R17 powder

these were my tightest 3shot groups & velocity

Barnes TTSX 250g 3/4" , 2635fps
Nosler 286 partitions, 1/2" groups, twice, 2500fps, hotter load 2600fps 1 1/8"
Nosler 250g Accubond, 3/8" group, 2670fps, hotter loads opened way up

not bad velocity for a 20" barrel

I did 21 3-round groups, the average with what it did like and what it didn't like was 1 1/4"

If you only feed it what it likes best its a less than 1" gun