Selling customers damage goods

On Sunday 17 Sep I went to incredible connection at Mall of africa and bought an Acer Revo M1-601. When I set it up at home, every thing seems fine until it started doing windows updates. Within 2hours it gives me a low disc space message and that windows can not continue with updates. I saw that there was only 600mb free space. I did a complete reset to start fresh. Then there was 13GB free space on the 32GB build in HDD. When it started doing windows updates again , within hours I was sitting with low disc space and no wondows updates. When I tried to contact Acer, I got a message back that the device was no longer under warranty. So I called incredible connection at mall of africa and they said the harddrive is to small for the windows to update and I should disable the updates. Really! There is a reason for updates and the device should under normal conditions do the updates. When I said to the technical guy that is not an option, he said I must bring it back and he will give me my money back. Clearly the staff is not trained to work on solutions and try to find the easy way out. To me , there is an issue with the device's 32GB hard drive unable to support windows 10 , which make this a manufacturing error and should be returned to Acer to be fixed. But the incredible connection staff does not see this as a solution and suggest the quick way out. Or is it perhaps that the device is no longer under warranty by Acer. The fact is if I return it, they will just sell it to the next guy as an open box item. So how do we solve this issue?