Brand new, fails to extract, fails to eject. So far, we only tried one or two types of ammo. Giving it a good cleaning and check over, will try again with more varieties of ammo. If it doesn't come around, back to S&W service it will go.

I should have noted this is the compact.

After a good cleaning it should cycle any brand of ammo. I'd send it for repair.

Clean well, lube, federal blue box usually shoots/functions in Smith and Wesson guns.

Try some mini mags or higher velocity ammo

Mine has been flawless for four years now. What kind of ammo are you using? I use high velocity only in mine. Mine even feeds the truncated cone Winchester bulk stuff, something most pistols won't do.

There was a time when the S&W name was synonymous with the very finest handguns.
Just like Stanley Tools were the best hand tools you could buy.
But that was long ago.
Today Stanley hand tools are junk.
And, today S&W is just a name of a company that makes very average handguns, which often have problems right out of the box.
Sadly, they are not alone.
Ruger turns out a lot of defective crap as well, as do others.
It's a bitter pill to swallow, but that's reality in 2021.

Dude... calm down. It's a sample of one among many that function just fine. I have a bunch of S&W guns and only have trouble with one. The M&P 15-22 that I recently bought is a jamming son of a gun. It's going back to the factory for a look over. I'm confident S&W will make it right. It happens to the best of companies on occasion. That's no reason for Henny Penny to run around proclaiming the sky is falling.

My S&W M&P 22 Compact functions perfectly with CCI Mini Mags and Stingers.

You have the compact or the full size? The compact is a better and more reliable gun. I believe its made in house by smith and the full is made by walther for them.

Took a brick of cheap thunderbolts for our compact to start jamming, then just a quick spray clean and it was good again.

I can guarantee you this... S&W's return rate is WAAAY lower now than it was in the past. I'm talking rate as a % of guns sold, not total returns. S&W makes a LOT more guns than they used to, so the overall number may be as high, or higher than previous decades, but as a % of guns made, the return rate is tiny compared to say the 1980's (or pick a decade you like).

That is precisely the correct course of action. S&W will make it right.