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Hi Terry,
If the camera starts blinking slowly, are recordings still being saved? Because blinking slowly would mean that a recording has been saved as ‘protected’. Because a factory reset is also performed, it seems to me that there could be a problem with the remote control. Because you can protect a recording with the remote control, but also perform a factory reset. Check whether the button on the remote control is functioning properly or is not stuck. Also check whether the plug of the remote control is properly connected and whether there is no moisture in it. There should be a small orange rubber ring in the connector to keep it waterproof. Also check this again with the front camera.
You can swap the front and rear camera to see whether the camera failure moves to the back. If so, then this problem is in the camera itself and not in the DVR.
Also check whether the power supply is sufficient. A supply voltage that is too low can also sometimes cause strange problems.
As a final tip, try updating the firmware again, if possible with a 32GB card.