When turned on at the wall all the blue lights appear and there is an amount of heat being emitted from the unit, but the fan is not operating. There is a medium level burning insulation type smell indicating in my opinion that it is not safe in this configuration.
Switching it on at the unit - then the fan starts up (and btw it feels like the heating element at this point goes to max instead of med). When turned off at the unit - the fan turns off but there is still some heating going on & the insulation smell returns.
Yes it is a failure, this is not normal operation. But this is a horrible failure mode because turning it off at night (or with the remote) while leaving it plugged in could maybe have a bad outcome.
I will probably send a letter to the manufacturer/importer and return it to them for engineering feedback. It is unlikely I will be accepting a replacement of this model. I would not use it. I would not give it away to an unsuspecting person either.
In fact I'm thinking I might just courier it direct to Energy Safety NZ.