PW2 Unable to reset my pw2 on firmware 5.6.1.0.6

Hi guys,
Tried searching for my problem but seems like I am the only one facing this problem.

I have a kindle pw2
The firmware is 5.6.1.0.2

I m unable to reset the device. Whenever I reset it. It goes back into some old setting .

The process is like
1. Reset kindle (used all possible methods). Tried deregisteration as well. No fun
2. Device reboots.
3. All books are on device. Forgotten wi fi
4. Shows device registered in my name (without me even entering any details)
5. I enter wi fi password, the device is now de registered, but all books still on my device. Even if I delete books one by one (or from pc), the books keep reappearing.
6. Registered the device to a different Amazon account. All the books are still on the device.
7. New side loaded books are removed automatically.
8. If I restart(not reset) the device the device reverts back to point 3.
9. The firmware update is showing greyed out.
10. Tried manual update but the device keeps deleting the update (5.6.5).


So friends, help me by either pointing to some new method. I can open the device but I need help my be in form of some video or step by step guide.

Hope I have made your weekend worthwhile. 😜😜😜