If you bought from a local store, you could try taking it back to them and asking them to try it. That's what I did and it's reassuring to know that it's nothing you are doing wrong. They could perhaps try bigger dies if you don't own any because that's when the problems will really show up. Although from your photo's it does look as though you have a problem machine.

I tested my machines to death so there was no excuse for them. I tried a variety of makes of dies, in case on make was causing the problem, different weights of paper and different settings. Have you tried embossing with it. When I used an A4 embossing folder the same thing happened, it embossed parts of the edge but not others and then there were odd bits of areas that simply didn't emboss at all, whilst other parts embossed fine.

I sent all the failed attempts off to the store with the machines so they could do like for like comparisons. You can't say I didn't try!