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Help Semi-Bricked Z740 Encryption Failed

My wife brought me her AT&T ZTE Radiant (Z740) Go Phone exhibiting the following behavior:

Sits at logo screen for an hour
Message comes up that Encryption Failed, must reset phone to factory defaults
After performing reset, same behavior

What I've tried:

Booting into Android system recovery <3e> using power/volume up
wipe data/factory reset
wipe cache partition
apply update from ADB : I've tried the base and stock roms from this forum, the package will send but will fail (Verifying update package... Installation aborted.)
apply update from external storage : same roms copied to sd card. Same result.

I don't need a rooted phone, just a working phone. Thoughts?
 
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