I am sorry to hear what you have been through. Is the HP technician going to replace the printer for you? It is more common practice to replace a printer rather than refund it or send you a different model but that isn't to say they won't. It sounds like you are in a different region of the world so if you want to troubleshoot with me, I would be more than happy to help, but if the printer is still under warranty, maybe you can try to reach a different person than your case worker.
I will leave this for others to answer if anyone else may have experienced this problem but I would say it is quite rare and that this printer is still too new to know if it can be considered a lemon but I do not think so. This is the first time I have seen it on the forums (probably because it is still in warranty I assume). Let me know if I can be of any assistance.
--Out of Paper Message in Photo Tray-- If you want to troubleshoot I may know of a step they didn't have you try. I'm more than happy to help.