Brand new SN850 500G at critical health

Hello there. I just bought a brand new SN850 from Amazon.de, installed Windows and the software I usually use. All of a sudden Windows starts bugging, explorer stops working, restarting explorer.exe process does nothing. Tried searching online, found someone sugesting that copying explorer.exe to c:/windows/system32 solves the problem - it didn’t. Now Windows didn’t even boot. I went ahead and ran chkdsk which found a lot of bad blocks in the drive. So formatted this thing again, reinstalled Windows, installed a bunch of disk drive testing software and here are the results.
Why is Dashboard showing a critical health on a new device? Did explorer.exe on system32 just destroyed the drive!?
Current status: drive is apparently working fine, good performance, no issues. But I’m still getting the same results on these tests. Chkdsk also doesn’t find any problems now.
HardDisk Sentinel telling me that the drive has a remaining lifetime of about a year and a half and 1.36TB of lifetime writes doesn’t make me feel better.
Should I return it?

Edit: here’s the smartctl log:

smartctl 7.2 2020-12-30 r5155 [x86_64-w64-mingw32-w10-b19043] (sf-7.2-1)
Copyright (C) 2002-20, Bruce Allen, Christian Franke, www.smartmontools.org

=== START OF INFORMATION SECTION ===
Model Number:                       WDS500G1X0E-00AFY0
Serial Number:                      20438Z441205
Firmware Version:                   613200WD
PCI Vendor/Subsystem ID:            0x15b7
IEEE OUI Identifier:                0x001b44
Total NVM Capacity:                 500 107 862 016 [500 GB]
Unallocated NVM Capacity:           0
Controller ID:                      8224
NVMe Version:                       1.4
Number of Namespaces:               1
Namespace 1 Size/Capacity:          500 107 862 016 [500 GB]
Namespace 1 Formatted LBA Size:     512
Namespace 1 IEEE EUI-64:            001b44 4a46594b7a
Local Time is:                      Fri Jul 16 17:33:06 2021 HVGMT
Firmware Updates (0x14):            2 Slots, no Reset required
Optional Admin Commands (0x0017):   Security Format Frmw_DL Self_Test
Optional NVM Commands (0x005f):     Comp Wr_Unc DS_Mngmt Wr_Zero Sav/Sel_Feat Timestmp
Log Page Attributes (0x1e):         Cmd_Eff_Lg Ext_Get_Lg Telmtry_Lg Pers_Ev_Lg
Maximum Data Transfer Size:         128 Pages
Warning  Comp. Temp. Threshold:     84 Celsius
Critical Comp. Temp. Threshold:     88 Celsius
Namespace 1 Features (0x02):        NA_Fields

Supported Power States
St Op     Max   Active     Idle   RL RT WL WT  Ent_Lat  Ex_Lat
 0 +     9.00W    9.00W       -    0  0  0  0        0       0
 1 +     4.10W    4.10W       -    0  0  0  0        0       0
 2 +     3.50W    3.50W       -    0  0  0  0        0       0
 3 -   0.0250W       -        -    3  3  3  3     5000   10000
 4 -   0.0050W       -        -    4  4  4  4     5000   45000

Supported LBA Sizes (NSID 0x1)
Id Fmt  Data  Metadt  Rel_Perf
 0 +     512       0         2
 1 -    4096       0         1

=== START OF SMART DATA SECTION ===
SMART overall-health self-assessment test result: FAILED!
- NVM subsystem reliability has been degraded

SMART/Health Information (NVMe Log 0x02)
Critical Warning:                   0x04
Temperature:                        34 Celsius
Available Spare:                    100%
Available Spare Threshold:          10%
Percentage Used:                    0%
Data Units Read:                    6 376 398 [3,26 TB]
Data Units Written:                 2 971 210 [1,52 TB]
Host Read Commands:                 46 839 597
Host Write Commands:                28 210 199
Controller Busy Time:               105
Power Cycles:                       36
Power On Hours:                     38
Unsafe Shutdowns:                   7
Media and Data Integrity Errors:    24 510
Error Information Log Entries:      24 679
Warning  Comp. Temperature Time:    0
Critical Comp. Temperature Time:    0

Error Information (NVMe Log 0x01, 16 of 256 entries)
No Errors Logged

Hi,

I would suggest you to test the drive health status through Western Digital Dashboard.

Title: Testing a drive for problems using The Western Digital Dashboard
Link: https://wddashboarddownloads.wdc.com/wdDashboard/DashboardSetup.exe