Much worse that I could have expected. Going to call warranty (or someone in TV) to see what resources they can provide to understand root issue. This is more than a switch that does not work. I cannot ever remember seeing something like this before, but maybe I have been lucky in my previous homes...
The black wire (burned) may have come disconnected when I pulled receptacle out of box. It does seem all of the wires have a good tight connection.
I am taking no further action at this time. A piece of duct tape is over the breaker to prevent accidental turn on.
