First, thanks to everyone here that has sympathized - it's been as frustrating as you can imagine. I've noodled what to do in the back of my mind over the weekend. One thing is certain, it's getting returned to AGD.
To @LMNOP's point - spot on with the assessment of the paint! Parts of the second stage do not look powder coated - rather painted sloppily with thick gloss. There are several areas with little and no paint on them whatsoever. When I look up close and down low, there is frigging RUST popping up everywhere on the second stage too! I first noticed this after I published the video of the leak, some spots where the oil dropped down to ate away at the paint and uncovered surface rust. I also noticed that there is a metallic gasket in between the heat dissipaters, which is kinked on one side a little. This could possibly be the cause for the leak in the first place (hard to see in these, but I'll take another photo in the daytime before I send it back)..
Here is what REALLY pisses me off more than anything - the last time that I ran the compressor, I started seeing RUST coloration coming out of the moisture drain valve! I just was starting to get acclimated to seeing the greenish-yellow tinge of oil when I'd bleed moisture off, but then it started coming out looking more akin to blood..
I had purchased a Coltri water separator and spare filters / inserts and added them as part of the "last mile" of the compressed air output. The filter has around 2.75hrs on it now, luckily - I didn't see any signs of this discoloration before adding this to the output so I believe that my guns and two tanks are safe.
Now that I've concluded that this compressor has to go back, I'm left asking myself what I'm going to do. I spent a fair bit of time looking at options, chatted with several people who's opinions I regard highly, and decided that I would generate a list of requirements for my needs. For the size, supposed quality, weight, and features, this compressor was what I landed on. AGD has them in stock, offered overnight shipping, and I pulled the trigger thinking the problem was solved. Having to come full circle and back to square one again
sucks.
With that said, I'm tremendously disappointed with the overall experience with AGD - there were some hiccups with the order processing, their email listed in the receipt was non-working, and something wasn't right with my order status up until FedEx arrived at my door for me to sign for it (I was luckily planning to work from home that day, FedEx delivery Manager notified me a couple of hours beforehand). The first tier rep that I corresponded with seemed great ("Craig"), but this other rep quickly shut the door in my face for any possible support, and that was that.
For these reasons, and to @Oregun's idea, I'm likely going to roll the dice with AoA for another Daystate compressor if they have one in stock. I'm frankly not real keen on their extended lead times that they say are for "testing" the merchandise, but I would be open to having them spend a day or so to ensure that what I'm buying isn't a leaky refurb or whatever.
This is subjective, so please do not judge me on this, but looking at this second stage component I cannot help but think that it was taken off of a returned model and spray painted to blend as if it were new. Being a Jeep owner and having had numerous custom lifted vehicles, I have seen enough rust buckets hiding under fresh paint to know when something isn't right, whatever the case may be I'm going to gamble one this being a fluke and go with a vendor that seems to have more in house expertise with this model. Hopefully, I won't have to come full circle again!