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I have seen XRC's fail right outta the box, a lot of them have screwed up free spool levers right outta the box. Either they won't freespool or they're stuck in freespool it's a known issue at SmittyBilt. Alot of new ones also are wired wrong to the solenoid. Try Calling Smitty Directly they might be able to help you out, as that's how they prefer to do there warranty stuff.