Default Moto G LTE reboots and hang with SD card inserted

Hi,

Received my moto G lte a couple of day ago. Put in a 32GB sandisk SD card. The phone constantly hangs and reboot while an sd card is inserted. Works fine without.

Sometimes, going into the settings will cause the phone to hang, resulting in the message "settings quit responding". Anyone else facing this issue. i tried reformatting the sd card multiple times and performing a factory reset. Did I receive a defective phone?