Just in case others run into the same issues, I thought I'd document my out of box experience with my new 2016 15" MBP-TB. TL;DR - experienced multiple issues and many hours of spinning beach ball, but eventually got it working. Started software set up - selected language Waited with big grey rectangle on screen. Eventually got error message that a critical software update had failed. Repeated this process several times, including the retry and shutdown options. Kept getting the same error message until eventually it worked. Continued setting up account. Got to "Setting up your Mac" screen. Got the spinning beach ball but otherwise no indication that progress was being made. After an hour, I started googling, and found conventional wisdom was to wait it out. So I did. After approximately 12 hours (!!!), this moved on to a login screen. But the only login option provided was an account I hadn't created and didn't have a password to. I can't remember what it was called, but something like "Setup Account". Rebooted in safe mode and got correct account on login page. Rebooted in normal mode and all was fine. I own a lot of Apple products, and have never seen anything even remotely like this before. But all appears to be working now.