I dont know anything about the money issues, because I dont have anyone (government or any other source) that is helping me which my device.
As for the faulty device, I have had to have them replace two hand sets that were faulty. It isnt unusual at all. They may initially try to not acept responsibility but if you can explain to them exactly what crazy errors are going on, they will switch it out. Be sure to document each error as it occurs.
My understanding is you have to have a device on all of your cars. So, if you trade in your old car for the new one, you would have that device removed and a new one installed in your new car. However, it seems from what I’ve read on these boards, that the Draeger is the most user-friendly (while still not infallible.) So it could be that you just need a new hand set.