Triage error of firstboot

hi, i played a bit with device
dir 620 rev A
and want to triage errors that occur. I installed the latest stable
latest stable
and boot is OK. However if i do factory reset via luci (or i believe the same 'firstboot' from failsafe mode)
then the device is not working anymore. it is pingable, failsafe works, but both dropbear and luci fail on normal mode.

Some more data after first boot: both dropbear and web server are listenable but...

<my comp>$ telnet 22
Connected to
Escape character is '^]'.

Connection closed by foreign host.
<my comp>$ telnet 80
Connected to
Escape character is '^]'.
HTTP/0.9 400 Bad Request
Connection: Keep-Alive
Keep-Alive: timeout=20
Content-Type: text/html

<h1>Bad Request</h1>Connection closed by foreign host.

Could it be that the overlay partition by default is not empty? have no idea how to dig. After tftpboot reset everytrhing works again

The poorly equiped device could be overwhelmed with the current release. Could be that RAM is depleted during reset via GUI and does not finish properly. It only has 32MB.

Does resetting the settings during boot via factory reset via button work? Maybe RAM is less of an issue during boot.

Doesn't seem to be the case... At least I don't turn on anything, and under that, it was about 9Mb of free space.